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.
EURUSD Surges as CPI Inflation Drop Spurs Fed Rate Cut Speculation:
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.