The EUR/USD dropped initially after the US consumer inflation reports showed better-than-expected figures. The Euro depreciated against the US Dollar by 0.39% or 46 base points to the 1.1849 mark, though the European single currency managed to return to pre-data levels.
According to the Labour Department's report, the consumer inflation in the US showed a monthly rise of 0.4% in the month of August, with an annual gain of 1.7% in the same period. An increase in the CPI figures boosted expectations for the Fed rate hike in December, which supported bullish sentiment in EUR/USD additionally fuelled by the NK latest missile launch. The next direction of the pair will be determined by Friday's retail sales data.
| Historical Data Table: US CPI m/m | |||||
| Date | 12.05.2017 | 14.06.2017 | 14.07.2017 | 11.08.2017 | 14.09.2017 |
| Actual | 0.2% | -0.1% | 0.0% | 0.1% | 0.4% |
| Forecast | 0.3% | 0.2% | 0.1% | 0.2% | 0.3% |
| Initial Reaction on Main Pairs | |||||
| Open Price | Close Price | % Change | |||
| AUD/USD | 0.79903 | 0.79628 | -0.34% | ||
| EUR/USD | 1.18952 | 1.18491 | -0.39% | ||
| USD/JPY | 110.531 | 110.95 | 0.38% | ||
| NZD/USD | 0.72159 | 0.71874 | -0.39% | ||