Breaking: US annual CPI inflation declines to 8.5% in July vs. 8.7% expected

FXStreet Team FXStreet

Inflation in the United States, as measured by the Consumer Price Index (CPI), declined to 8.5% on a yearly basis in July from 9.1% in June, the data published by the US Bureau of Labor Statistics revealed on Wednesday. This reading came in lower than the market expectation of 8.7%.

The Core CPI, which excludes volatile food and energy prices, stayed unchanged at 5.9%, compared to analysts' forecast for an increase to 6.1%. On a monthly basis, core inflation rose by 0.3% following June's increase of 0.7%.

Follow our live coverage of the market reaction to US inflation data.

Market reaction

With the initial market reaction, the greenback came under heavy pressure and the US Dollar Index was last seen losing 1% on the day at 105.22.

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

GBP/USD remains offered near 1.3470

GBP/USD adds to the multi-day negative streak and retreats toward the 1.3470 zone on Wednesday, or four-week troughs. Cable’s deep correction comes on the back of the unabated recovery in the Greenback and the persistent geopolitical concerns.

EUR/USD recovers toward 1.1600 on renewed USD weakness

EUR/USD gains traction in the second half of the day on Wednesday and rises toward 1.1600. The US Dollar (USD) weakens, possibly due to another intervention in foreign exchange markets to support the Japanese Yen, and allows the pair to stretch higher. Meanwhile, the data from the US showed earlier in the day that employment in private sector rose less than expected in August.

Gold turns positive as turmoil in Yen pairs hits US Dollar

Gold (XAU/USD) stages a sharp rebound on Wednesday, reversing all its earlier losses as a sudden rise in the Japanese Yen (JPY) triggers broad selling pressure on the US Dollar (USD).

WTI advances to mid-$90.00s, fresh high since July 24 amid escalating US-Iran tensions

West Texas Intermediate (WTI) – the benchmark US Crude Oil price – scales higher for the third straight day – also marking the fifth day of a positive move in the previous six – and climbs to a fresh high since July 24 during the Asian session on Wednesday.

Crypto Today: Bitcoin, Ethereum, XRP edge lower as renewed US-Iran tensions weigh

The cryptocurrency market is pulling back broadly on Wednesday as investors adopt a cautious stance, with Bitcoin consolidating near its short-term support at $77,000. Ethereum remains under pressure, slipping toward $2,400. Ripple is also trending lower.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.