He global dollar stepped back in the middle of the announcement of the Consumer Price Index (CPI) of USA where the result was lower than expected, with a fall of 0.1%, so a further loss in the value of the greenback would be expected.
This morning, US consumer prices unexpectedly fell in June and the annual increase was the lowest in a year, reinforcing the view that the disinflationary trend is back on track and bringing us one step closer to the Federal Reserve from the United States (Fed) towards lowering interest rates.
He dollar index fell 0.49% to 104.45 units, reaching 104.07, the lowest level since June 7. However, compared to the and in, he dollar fell 1.81% to 158.75 and reached 157.4, a low not seen since June 17.
For its part, the euro rose 0.34% to $1.0867 and hit $1.090, its highest level since June 7.
In this sense, the Index of Consumer Price Index (CPI) fell 0.1% last month after remaining unchanged in May, the agency reported. Department of Labor Bureau of Labor Statistics from the United States.
The US dollar, meanwhile, opened with a drop at the start of the day, awaiting the CPI data, at 104.91 units. This drop could have an impact on the deepening of the greenback’s depression, while it could also be affected by the rate cuts that the new CPI data would cause.
Market reactions
For their part, the world stock exchanges hit new all-time highs. The performance of the US Treasury bonds fell after consumer prices unexpectedly fell 0.1% in June, while the annual increase was the smallest in a year, reinforcing views that the disinflationary trend is back on track.
However, despite the favourable data, the indices S&P 500 and Nasdaq Composite fell into Wall Street, as investors rotated into lower-weighted rate-sensitive sectors such as real estate and utilities from sectors such as technology, which has already rallied this year.
The world stock index of MSCI advanced 0.05 points, or 0.01 percent, to 824.82 units, after rising 0.7 percent earlier and touching a record high. The European index STOXX 600 improved by 0.6%.
Source: Ambito
