US Dollar Retreats as Inflation Misses Expectations

The US dollar fell against its most-traded rivals (with the exception of the extremely weak Great Britain pound) after US inflation missed expectations.

The Bureau of Labor Statistics reported that the Consumer Price Index rose 0.2% in April on a seasonally adjusted basis following the 0.1% decline in March. It was a slower rate of growth than 0.3% predicted by experts. The core CPI rose 0.1%, also missing expectations — 0.2%.

Analysts speculated that, while the data is unlikely to deter the Federal Reserve from its policy path, it reduces pressure on the Fed to tighten its policy more aggressively.

EUR/USD jumped from 1.1850 to 1.1928 as of 19:27 GMT today. USD/JPY fell from 109.74 to 109.35 after touching the daily high of 110.01.

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