18, July 2013

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

The U.S. dollar was traded lower against most major currencies on Tuesday after the report on the U.S. inflation. According to the published reports, the core inflation remains restrained, giving the Federal Reserve space for further implement of the loose monetary policy.

Although the dollar went up slightly immediately after the inflation report, it quickly handed over most of the positions gained by starting to trade down compared to Monday's closing level against the Japanese yen and the euro. Volatility was caused by the fact that the overall U.S. inflation is slightly above forecast - consumer price index CPI rose in June by 0.5% compared with the previous month, while the core CPI of consumer prices, which excludes volatile food prices and energy prices, increased not so significantly, by 0.2%.

A report was also published on Tuesday which said that U.S. industrial production in June rose by 0.3%. According to the consensus forecast of economists it would grow by 0.2%.

U.S. consumer prices in June rose at the strongest pace in five months, potentially signaling a stabilization of inflation, while the representatives of the Federal Reserve System reflect upon reduction incentives.

According to the data, the consumer price index (CPI) in June, adjusted for seasonal variations rose by 0.5%. This is evidenced by the report published by the U.S. Department of Labor on Tuesday. Economists had expected an increase of 0.4% compared to the previous month.