US inflation picking up again - USD lift away from the lows
Just when you think the USD is in for a little more of an adjustment lower, the US data comes in to remind traders that the landscape in the US remains healthy enough to consider a steadier rate profile relative to its counterparts. At 1.8%, annualised CPI was a little higher than expected, and up from 1.6% previously. To boot, we also saw core CPI edging back to 2.2% vs 2.1% previously and this has seen the USD bump back up again from the lows seen recently.
Despite the weakness highlighted in the ZEW survey this morning, EUR/USD put in another test of the 1.1230-35 area, but stopped short again and is now looking more likely to test sub 1.1200, but for some dip buying seen ahead of the figure.
USD/JPY hit lows around 105.05/6 earlier on this morning but has also seen a push up as we look to move up towards 105.50 again.
Cable looks well offered into 1.2100, and as such, has also been reined in again, though overall ranges across the board are extremely tight today and reflective of summer markets.
Of the bigger movers, USD/CAD looks to be making the bigger ground at present, seemingly set on pushing for 1.3300 again after a persistent bid seen this morning. AUD is also languishing in the mid 0.6700's but has been underperformed by NZD, which is edging back towards 0.6400 again. It seems risk-off price action is the more prominent activity today - as seen by the earlier move higher in Gold.