GBP and EUR see 6-month high amid US inflation data
1 minute readThe latest US inflation report has given markets a big boost for the second month in succession. The dollar index declined to 103.16, a level not traded since the middle of the year. This saw GBP/USD rally to almost 1.2450 and EUR/USD mirrored cable, bursting through 1.0650, also for the first time since June. This comes in spite of the fact that German harmonized CPI remains at a rather uncomfortable 11.3% (YoY).
As a result of a dovish approach, we are more likely to see a 50bps hike than the previous 75bps which may see further USD weakness.
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