EUR/USD Bounces Off 1.17 as July Inflation Stays High
- EUR/USD breaks a six-day losing stretch, closes higher by about 0.20% on Wednesday
- Consumer price data for July showed inflation remains at 5.4%, same as June’s figures
EUR/USD Bounces Off 1.17
The EUR/USD pair rebounded on Wednesday after the latest consumer price report showed inflation for July remained elevated. The major currency pair slipped to a session low of 1.1704 just before the inflation report was released by the US Labor Department.
Fresh inflation data showed consumer prices for July have increased by 5.4% on an annual basis, surpassing expectations for a 5.3% growth. The same pace was observed in the data for the previous month, thus indicating the rate of inflation keeps steady, despite assurances from the Fed that higher prices will ease.
Against that backdrop, the EUR/USD shifted gears and began climbing moments after the report was released. The pair added about 38 pips after it reversed the daily slide and managed to close the day in positive territory, up a little over 20 pips, or roughly 0.2%, to 1.1740.
By the quick surge to the upside yesterday, the EUR/USD snapped a six-day losing streak that had erased over 150 pips, or about 1.3%, from the pair’s value.
The bottom of 1.1704 reached prior to the inflation report was also a technical level of support for the pair as it acted as a double bottom. The last time the EUR/USD reached that level was on March 31, a day that marked a significant medium-term upside swing in the exchange rate.
Major Currencies Advance Against the US Dollar
Besides the euro gaining against the dollar, other major currencies also advanced against the weaker greenback. The GBP/USD climbed about 0.20% to finish the day at 1.3865. The USD/JPY and the USD/CHF slipped moderately by about 0.1% each.
Gold soared about $30, or over 1.5%, as the higher inflation reading caused market participants to seek a safe haven while offloading the dollar. The precious metal closed the day at $1,752 per troy ounce. Gold still remains pressured in the short term after it experienced a flash crash on Monday which sent its price tumbling to a five-month low of $1,670 per troy ounce.
Why Trade with Clover4x?
At Clover4x, both experienced and new traders will enjoy a new and fresh take on Forex. Our team is focused on bringing you the safest platform on this side of the rainbow, ensuring your pot of gold is secure at all times.
We also have convenient and faster tools to fund your account, while providing many innovative opportunities for success. With some of the quickest deposit and withdrawal times around the market, you will be ready to enjoy FX in no time.
Making Forex accessible and safer is our goal on Clover4x. We aim to provide an open and clear platform that allows traders of any budget or walk of life to thrive in the Forex market. With our platform, you can start filling your golden pot today!