{"id":151389,"date":"2019-07-12T09:55:12","date_gmt":"2019-07-12T13:55:12","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=151389"},"modified":"2019-07-12T09:31:46","modified_gmt":"2019-07-12T13:31:46","slug":"usd-down-again-despite-stronger-cpi","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/07\/usd-down-again-despite-stronger-cpi\/","title":{"rendered":"USD Down Again Despite Stronger CPI"},"content":{"rendered":"
July 12, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

USD Retreats Despite Positive CPI Surprise<\/strong><\/h2>\n

The US dollar continues trades lower once again today as the sell-off from the FOMC minutes on Wednesday resumes. The details in the minutes have bolstered expectations of a Fed rate cut at the upcoming meeting in July.\u00a0Yesterday, USD reversed losses in response to the June CPI which came in higher than expected at 2.1% on the core reading.<\/strong>\u00a0USD index trades 96.57 last, still well below the 97.10 resistance level.<\/p>\n

Euro Still Under Pressure<\/strong><\/h2>\n

EURUSD has seen higher levels against USD again today, benefiting from the current weakness in the greenback.\u00a0A lack of tier one domestic data has seen quiet trading for the single currency this week which has mainly been driven by USD flows.<\/strong>\u00a0EURUSD trades 1.1264 last, capped against resistance at the level formed by prior swing highs in May.<\/p>\n

GBP Rally Remains Intact<\/strong><\/h2>\n

GBPUSD is continuing its recovery battle against USD today as bulls fight to keep price above the 1.2439 level support.<\/strong>\u00a0Positive data earlier in the week has kept sentiment skewed to the upside, despite the ongoing Brexit uncertainty which poses risks to the outlook. For now, focus remains on further downside, with the recover likely to prove shallow.<\/p>\n

SPX500 Hits Fresh All-time Highs (Again!)<\/strong><\/h2>\n

Risk assets have enjoyed further upside this week as the dovish FOMC meeting minutes have once again lit a fire under equities.<\/strong>\u00a0The prospect of a Fed rate cut has seen the SPX500 breaking out to all-time highs yet again this week with the index trading 3007.58 last. Along with renewed optimism over\u00a0US-China trade negotiations<\/a>, the outlook is firmly positive for equities.<\/p>\n

Safe Havens Down As Equities Soar<\/strong><\/h2>\n

Safe havens have had a difficult day today given the strong risk-on tone.\u00a0Despite USD weakness, JPY has fallen against the dollar as higher equities prices have capped safe-haven inflows. Gold\u00a0<\/strong>has fallen back too, retracing almost all of its initial gains against USD so far today.<\/strong>\u00a0XAUUSD trades 1405.96 last, down from earlier highs of 1412.43. USDJPY trades 108.45 last, as the recovery off the 107.90 level continues.<\/p>

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Crude Continues Higher<\/strong><\/h2>\n

Oil prices remain supported today as the market continues to grind higher in the wake of yet another bullish\u00a0report from the EIA<\/a>\u00a0which showed that US crude stores were down for a fourth consecutive week last week.<\/strong>\u00a0Ongoing tensions in the Middle East between the UK\/US and Iran are also keeping oil well bid as traders anticipate supply disruptions. Crude trades 60.73 last, with price remaining above the recently broken 60.07 level.<\/p>\n

CAD Rises, AUD Drops<\/strong><\/h2>\n

USDCAD has moved sharply lower today, breaking below the 1.3037 level earlier to trade its lowest level since October last year.<\/strong>\u00a0A combination of a weaker USD, optimistic BOC, and higher oil prices, is keeping CAD well supported, a theme which is likely to continue in the near term.<\/p>\n

AUDUSD has turned a little lower this morning<\/strong>\u00a0as the .70 level once again finds sellers stepping in.\u00a0This has a been a<\/strong>\u00a0major pivot for AUDUSD over the year and despite several attempts recently, price has yet to hold above the level longer than a few days. With USD trading lower and risk sentiment improving, we could see a topside break over the coming sessions, though the fundamental backdrop for AUD is not currently supportive.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex USD Retreats Despite Positive CPI Surprise The US dollar continues trades lower once again today as the sell-off from the FOMC minutes on Wednesday resumes. The details in the minutes have bolstered expectations of a Fed rate cut at the upcoming meeting in July.\u00a0Yesterday, USD reversed losses in response to the June CPI […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-151389","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/151389","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=151389"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/151389\/revisions"}],"predecessor-version":[{"id":151391,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/151389\/revisions\/151391"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=151389"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=151389"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=151389"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}