The US dollar eased during the overnight session as investors reacted to strong US inflation numbers. According to the Labour Department, the headline consumer price index (CPI) rose by 5.4% in May while core CPI rose by 3.8%. The two were the biggest gains since 2008 and 1992, respectively. The data showed that the price of most items is rising as the economy recovers and supply backlogs continue. For example, the prices of cars rose by 7.3% because of the ongoing shortages of semiconductors. Still, analysts believe that the Federal Reserve will maintain its stand because it sees these numbers as being transitory.

The British pound rose ahead of the latest UK GDP data that will come out at 07:00 GMT. The final figure is expected to show that the economy contracted by 1.5% in the first quarter, leading to a 6.1% year-on-year decline. The Office of National Statistics (ONS) will also publish the latest manufacturing, industrial production, and construction output numbers. The pound is also reacting to the reportedly rising number of coronavirus cases in the UK. Analysts expect that the government will delay the lockdown easing to curb the new wave.

The euro is little changed after the European Central Bank (ECB) delivered its interest rate decision. The bank left the EU interest rate and quantitative easing unchanged. Analysts expect the bank to start tapering its asset purchases later this year since the EU economy has recorded a strong recovery. Later today, Spain will release its consumer price index data. Other key events scheduled for today are the G7 meetings and the Russian interest rate decision.


The EURUSD pair rose to 1.2185 after the ECB decision and US inflation data. On the four-hour chart, the pair moved slightly above the upper line of the descending channel. It is above the 23.6% Fibonacci retracement level while the Relative Strength Index (RSI) has moved to the neutral level of 54. The pair will likely remain at the current range today.



The GBPUSD dropped to 1.4073 yesterday as fears of extended lockdowns in England rose. It then rose sharply after the latest US CPI data and is trading at 1.4173. The pair is slightly above the 25-day and 15-day moving averages while the Relative Strength Index (RSI) has moved to 56. It is also above the dots of the Parabolic SAR. The pair will likely remain at this range for the next few sessions.



The ETHUSD retreated after the US inflation numbers. The pair dropped to 2,420, which was slightly below yesterday’s high of 2,627. On the four-hour chart, the pair is slightly below the lower line of the bearish pennant pattern while the Relative Strength Index (RSI) kept falling. The pair is also below the 25-day moving average. Therefore, the pair will likely keep falling as bears target the next key support at 2,350.


General Risk Warning for FX & CFD Trading. FX & CFDs are leveraged products. Trading in FX & CFDs related to foreign exchange, commodities, financial indices and other underlying variables, carry a high level of risk and can result in the loss of all of your investment. As such, FX & CFDs may not be appropriate for all investors. You should not invest money that you cannot afford to lose. Before deciding to trade, you should become aware of all the risks associated with FX & CFD trading, and seek advice from an independent and suitably licensed financial advisor. Under no circumstances shall we have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to FX or CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever.

Feed news

Latest Forex Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD looks to 1.2200 amid weaker US Treasury yields, risk-on mood

EUR/USD is advancing towards 1.2200 amid the US dollar’s weakness on softer Treasury yields. Dovish Fed expectations continue to persist despite hotter US inflation. The euro benefits from the ECB’s progressive economic outlook.


GBP/USD trades better bid below 1.4200 ahead of UK GDP

GBP/USD struggles for a clear direction while wavering below 1.4200 ahead of the UK GDP data. The cable shrugs off a softer US dollar amid a cautious sentiment ahead of the G7 meeting and fresh chatters over a delay in the UK reopening.


Gold looks to retest May highs at $1913

Gold price is looking to extend Thursday’s stellar performance on the final trading day of this week, as the bulls briefly recapture the $1900 mark. Weakness in US dollar and Treasury yields motivate gold bulls.

Gold News

Shiba Inu price gains in jeopardy as it tags crucial support level

Shiba Inu price shows little to no connection with the crypto markets as it failed to rally on June 8. Additionally, SHIB continued to descend while most altcoins were on a rally, following Bitcoin.

Read more

Hot Inflation is warming the seat for the June FOMC

Americans are seeing the fastest price increases since their seventh-graders were born as inflation builds into the US economy from the disruptions of the pandemic lockdowns. Core CPI at 3.8% is the steepest gain in 29 years.

Read more