EURUSD fell on the announcement of mixed US inflation data.
EURUSD is trading just above 1.1000 during Wednesday’s US session, following the release of August US Consumer Price Index data, which pushed the pair lower.
The US Consumer Price Index (CPI) increased by 2.5% year on year in August, compared to 2.9% in July and below experts’ forecast of 2.6%. According to data from the US Bureau of Labor Statistics, monthly CPI increased by 0.2%, in line with projections and the same as previously Bureau of Labor Statistics.
US dollar declined as the likelihood of Trump enacting dollar-friendly policies decreased.
In August, the core CPI (excluding food and energy) grew by 3.2% on an annual basis, matching the rate seen in July and as forecast. The monthly core CPI increased by 0.3%, exceeding the 0.2% in July and the 0.2% forecast.
US dollar traded higher, while EURUSD declined approximately a quarter of a percentage point.
EURUSD surged following the Trump-Harris debate.
EURUSD loses early gains on Wednesday as the US Dollar (USD) falls broadly following the Trump-Harris televised presidential election debate.
Most observers feel that Vice President Kamala Harris won the debate, and a recent survey from the BBC showed that she is ahead with 47% vs Former President Donald Trump received 43%.
The US Dollar (USD) was dropping, and thus EURUSD was gaining, as one of Trump’s priorities is to defend the US Dollar’s place as the world’s reserve currency. This includes penalizing countries that refuse to trade in USD by placing tariffs on their products. The policy is in response to the BRICS trading bloc’s expanding importance and de-dollarization agenda in the global economy.
