BREAKING: EURUSD gains after lower than expected CPI data 📌

01:30 PM BST, United States - Inflation Data for May:

• CPI: actual 0.1% MoM; forecast 0.2% MoM; previous 0.2% MoM;
• CPI: actual 2.4% YoY; forecast 2.5% YoY; previous 2.3% YoY;
• Core CPI: actual 0.1% MoM; forecast 0.3% MoM; previous 0.2% MoM;
• Core CPI: actual 2.8% YoY; forecast 2.9% YoY; previous 2.8% YoY;

The report once again came in weaker than expected. Following the release, investors are responding by buying risk assets such as stocks and cryptocurrencies, while selling off the U.S. dollar (USD). A weaker-than-expected report during a full-scale trade war should be seen as positive by Fed officials and could pave the way for further interest rate cuts.

However, policymakers will likely want to see a sustained trend of lower readings, and in this context, it will be important to listen to the press conference following next week’s FOMC decision. For now, the expected decision for next week remains unchanged — to keep interest rates at their current level.