Weaker Than Expected U.S. Inflation Data Hurts Dollar – 11 August, 2022

Weaker than expected U.S. inflation data sent the dollar tumbling and pushed the yen and euro higher. U.S. consumer prices were unchanged in July compared with June, when prices rose a monthly 1.3%. The July result was lower than expectations due to a sharp drop in the cost of petrol, causing markets to reposition on hopes that inflation was peaking. After jumping 0.84% higher the previous session, the euro was last trading at $1.0297, after gaining its biggest daily percentage gain since mid June. The yen was at 132.83 per dollar, after the greenback had fallen 1.6% overnight on the Japanese currency, which is particularly sensitive to moves in U.S. yields. The Australian dollar was at $0.7077 after a 1.7% increase overnight, and the British pound was last standing at $1.2207.