Forex Today: Dollar strengthens on soaring inflation

What you need to know on Wednesday, July 14:

 The dollar approaches its monthly high against most major rivals, boosted by upwardly revised US inflation.  The Consumer Price Index was upwardly revised in June to 5.4% YoY, much higher than the expected 4.9%. The core reading was also upwardly revised from 3.8% to 4.5%. Germany also published its June inflation figures, with the annual Consumer Price Index confirmed at 2.3%. The figures revived speculation about a tighter monetary policy, despite policymakers work hard on cooling down such expectations.

The EUR/USD pair reached a fresh multi-month low of 1.1780, holding nearby ahead of the Asian opening, usually a sign of further falls ahead. GBP/USD hovers around 1.3820 while AUD/USD nears this 2021 low of 0.7409.

The Canadian dollar fell despite higher oil prices. WTI moved above $75.00 a barrel amid speculation of tighter supply, as the OPEC+ can’t agree on higher output, and expectations of a further draw in US inventories.

Gold prices were quite volatile after the release of US inflation figures, but the bright metal is ending the day pretty much unchanged at around $1,808 a troy ounce.

Wall Street struggled to post some gains, with US indexes ending the day mixed around their opening levels. On the other hand, government bond yields resumed their advances, with the yield on the 10-year US Treasury note reaching 1.42%.

The focus shifts to US Federal Reserve chief Jerome Powell who will testify on the Semi-Annual Monetary Policy Report before the House Financial Services Committee and will try to convince Congressmen about the need of maintaining facilities despite the economic progress. His prepared remarks have already been published, and the event will likely have a limited impact on markets.

The coronavirus Delta variant is dominant in the Northern Hemisphere and the number of new cases is on the rise in the US and Europe. Fears about it delaying the economic comeback weigh on investors’ mood.

Three reasons why Shiba Inu is one of the most bullish cryptos in the market


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