In the late American session, the EUR/USD was under bearish pressure.
On rising US Treasury note yields, the US Dollar Index rises above 92.70.
In June, the annual CPI in the United States increased to 5.4 percent.
Following the release of the US inflation statistics, the EUR/USD pair fell below 1.1800 in the early American session, but recovered to 1.1840. The pair headed south again in the last hour as the greenback regained momentum, and was last seen trading at 1.1782, its lowest level since early April, losing 0.66 percent on the day.
Inflation in the United States, as measured by the Consumer Price Index (CPI), climbed to 5.4 percent on a yearly basis in June, according to the US Bureau of Labor Statistics. This result was higher than the market’s forecast of 4.9 percent, helping the dollar outperform its peers. However, the report’s underlying facts confirmed that rising price pressures are due to temporary factors, and the US Dollar Index (DXY) struggled to maintain its bullish momentum.
Meanwhile, the lackluster demand exhibited at the 30-year US Treasury bond auction spurred a surge in T-bond yields, giving the USD a lift. The DXY is currently trading at 92.74, up 0.55 percent on the day, and the benchmark 10-year US T-bond yield is up 3.45 percent at 1.413 percent.
The European economic calendar will contain May Industrial Production data on Wednesday. Later in the day, FOMC Chairman Jerome Powell will deliver the Federal Reserve’s semiannual report on the condition of the US economy to Congress./n
