Euro boosted on weak US data

Published on 15.05.2024 15:55

EUR/USD refreshes monthly high near 1.0870 in Wednesday’s New York session. The major currency pair strengthens as the United States Consumer Price Index (CPI) eases in line with estimates (CPI) and the monthly Retail Sales remain stagnant for April. 

An expected decline in price pressures in the US economy, along with weak Retail Sales data, is an unfavorable situation for the US Dollar and bond yields. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, tumbles to more than a month low around 104.50. 

 10-year US Treasury yields have also plunged to 4.36% as weak data is expected to boost expectations for the Federal Reserve (Fed) to begin reducing interest rates from the September meeting. This will also improve the confidence of Fed policymakers, who were concerned that the progress in the disinflation process has stalled as the previous three reports were hotter than expected.