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No Surprise on Inflation in the US, Markets Relaxed 📊
The US inflation data for July has been released. The annual CPI remained at 2.7%, maintaining the level of June, and was slightly below the market expectation of 2.8%.
📌 Key figures:
Headline Inflation (Annual ): %2.7 – Slightly below expectations
Core Inflation (Annual ): %3.1 – Slightly above expectations
Monthly CPI: 0.2% – Consistent with forecasts
Monthly Core CPI: 0.3% – Met expectations
💹 Market Reaction:
The Dollar Index closed at 98.35, down 0.15%.
USD/CHF has become the most depreciated pair (-%0.35)
EUR/USD rose towards 1.1650
GBP/USD has continued to trade sideways around 1.3450.
🔍 Fed Expectations: Data increased the likelihood of the Fed making a 25 basis point rate cut at its September meeting to 90%. Monetary policy steps for the remainder of the year will be shaped in light of this data.
#CPI Data Coming#