Dollar Falls and Gold Rallies as US CPI Trails Estimates

The dollar index is down 0.55% as US June consumer prices rose less than expected, reinforcing a dovish read-through for the Fed. The benign CPI reduces the odds of a Fed rate hike at the upcoming FOMC meeting, lifting rate-cut expectations and pressuring the USD lower.

Analysis

The dollar index is down 0.55% as US June consumer prices rose less than expected, reinforcing a dovish read-through for the Fed. The benign CPI reduces the odds of a Fed rate hike at the upcoming FOMC meeting, lifting rate-cut expectations and pressuring the USD lower.