Good morning, dear traders! We’re here with a EURUSD analysis in light of CPI news. Let’s delve into the analysis without further delay.

The EURUSD surged on Wednesday, marking one of its strongest performances in 2024, as it climbed to 1.0900 and continued its upward trajectory towards a fourth consecutive week of gains. Broad market selling pressure exerted a downward force on the US dollar (USD) as risk appetite surged following a more substantial-than-expected drop in US Consumer Price Index (CPI) inflation.

US CPI inflation declined to 0.3% from the previous month, falling below the market’s consensus forecast of remaining steady at 0.4%. This unexpected decrease triggered a broad market risk rally, fostering optimism about the potential for the Federal Reserve (Fed) to cut interest rates in September. Consequently, this sentiment bolstered the EURUSD pair.