Summary:
- US headline inflation for June meets expectations
- Core prices rise somewhat more than forecast
- The greenback benefits from the data, a key level to watch on EURUSD
The June inflation report for June came broadly in line with expectations as headline price growth slowed down to 1.6% from 1.8% in annual terms. At the same time, core prices, excluding food and energy, accelerated to 2.1% from 2%, beating the median estimate suggesting no change. The knee-jerk move is supportive of the US dollar. Looking around the FX market one may focus on the EURUSD as the pair hovers around the key technical resistance. Once bulls fail to move higher, a pullback toward 1.12 could be on the cards.
The EURUSD trades in a key place following the US inflation report. Source: xStation5
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