The dollar index (DXY00) today is down by -0.73% at a 1-month low. The dollar retreated today after the weaker-than-expected US June CPI report bolstered speculation the Fed will be able to cut interest rates this year. Also, today’s s rally in the S&P 500 to a new record high reduced liquidity demand for the dollar. A supportive factor for the dollar was the decline in weekly US jobless claims to a 6-week low, a sign of strength in the labor market that is hawkish for Fed policy.
The US June CPI eased to +3.0% y/y from +3.3% y/y in May, better than expectations of +3.1% y/y. The June CPI ex-food and energy eased to a 3-year low of +3.3% y/y from +3.4% y/y in May, better than expectations of no change at +3.4% y/y.
.png?w=600)
