World-Signals

The higher U.S. consumer price may support the dollar in a short

Short
FX_IDC:EURUSD   Euro / U.S. Dollar
The higher U.S. consumer price may support the dollar in a short term period.
Inflation climbs for third straight month: U.S. consumer prices rose 5.4% in June from a year ago, again higher than expected.

The dollar became stronger after today's key report for U.S. inflation . The Dollar gained about 55 pips after the release of the news.
This year World-Signals.com expects to see the highest inflation in the last decade. As the dollar gains today by this news in a mid and long-term period the dollar may lose against the major currencies.
But the higher inflation is a signal that Fed policy to hike U.S. interest rates is close. The Fed last month announced that it will make two interest rate hikes with the minimum 0.25% but this high inflation may push the Fed to make higher than expected rates hike.

At the same time the inflation in the biggest European economy is 2.3% the same as expected and the same as in prior month of year base.
The Germany Consumer Price Index was released earlier today of 2.3% of year base and 0.4% for June the same as expected and prior month too.
For tomorrow (Wednesday July 14th) the most important event is Fed's Chair Powell testifying schedule or 16:00 GMT .

The news for U.S. Consumer prices may strengthen the Dollar in a short term period. Our prediction is to see EURUSD at levels of 1.1600.