USD weakens as soft CPI triggers equity rally, impacts major FX pairs
The US dollar index fell 0.8% to 106.50 as softer-than-expected CPI data sparked a broad risk-on rally across markets. November CPI came in at 2.7% YoY, below the 2.9% forecast, while core CPI matched expectations at 3.3%. The data reinforced expectations for a Fed rate cut at today's FOMC meeting, with markets now pricing in a 97% probability of a 25bp reduction. Major forex pairs responded sharply, with EUR/USD climbing 0.6% to 1.0520 and GBP/USD advancing 0.7% to 1.2780. The softer inflation print has shifted near-term dollar sentiment negative, with technical indicators showing the DXY breaking below its 50-day moving average at 106.80. Traders should monitor the Fed's dot plot projections for 2025, which could either amplify or reverse current USD weakness depending on the hawkishness of future rate guidance.
Related Symbols:
EURUSD
GBPUSD
DXY
This is a summary of the original article by Forexlive. To read the complete article, please visit the source website:
Read Full Article at ForexliveNews data provided by Finnhub. ForexSentiment.live provides this summary as a convenience with proper attribution to the original source. The full article is available at the original publisher's website.
