{
  "type": "article",
  "title": "Cooling US price data knocks the dollar and lifts the euro",
  "summary": "Softer-than-expected US inflation for June pressured the US Dollar and pushed EUR/USD higher, as traders scaled back bets on a July Fed rate hike.",
  "content": "The euro climbed against the US Dollar on Tuesday after fresh American inflation figures came in far softer than markets had braced for, taking the wind out of the greenback. EUR/USD gained ground as investors concluded that with prices cooling this quickly, the Federal Reserve has far less reason to raise interest rates in July. A weaker dollar not only helped this currency pair but also lent fresh support to the broader universe of risk-linked assets.\n\nAccording to live market data, EUR/USD is currently trading around 1.14, roughly in line with its previous close, and the pair is up about 0.35% on the day. Over the past 52 weeks it has swung within a band stretching from 1.13 to 1.20.\n\nInflation data drags the dollar down\nThe US Consumer Price Index, the headline CPI reading, fell 0.4% month over month in June, against expectations for only a 0.1% decline and after a 0.5% increase in May. On an annual basis, inflation slowed sharply to 3.5% from 4.2%, coming in below the 3.8% figure markets had forecast. Core CPI was unchanged on the month, while the annual underlying rate eased to 2.6% from 2.9%.\n\nEmployment signals softened too. The ADP four-week average slipped to 19.75K, pointing to a cooling labour market. With both inflation and jobs data losing steam, selling pressure on the dollar only intensified.\n\nWarsh keeps a hawkish tone\nDespite the softer numbers, Fed Chair Kevin Warsh struck a relatively hawkish note during his congressional testimony, repeating that the central bank remains committed to bringing persistent inflation under control. Testifying on the Semiannual Monetary Policy Report before the US House Financial Services Committee, Warsh made clear the Fed is sticking to its goal of price stability and 2% inflation.\n\nWarsh described the US labour market as broadly stable. He pointed to low unemployment, limited layoffs and solid nominal wage growth as evidence that the jobs picture remains firm even as prices ease.\n\nTrump's call on Iran and Hormuz\nGeopolitics stayed firmly in focus as well. US President Donald Trump said the United States would impose a full blockade, but only on vessels travelling to and from Iranian ports. At the same time, Trump dropped the proposed 20% US reimbursement fee for cargo crossing the Strait of Hormuz, replacing it with trade and investment agreements involving Gulf states.\n\nThe Strait of Hormuz is one of the world's most critical oil corridors, so any tightening or easing there feeds straight into global risk sentiment and commodity markets.\n\nWhere EUR/USD stands now\nDuring the session, EUR/USD pushed past 1.1460 to multi-day peaks before slipping back toward the low 1.1400s as the North American session drew to a close. Fading bets on further Fed tightening later in the year, combined with the poor CPI print, hurt the dollar and handed the pair fresh momentum.\n\nOn the charts, immediate resistance sits at the 1.1434 horizontal barrier, followed by a stronger cap at 1.1446. On the downside, initial support lies at the 20-period SMA at 1.1418, just ahead of the horizontal floor at 1.1416. A deeper pullback would expose the 100-period SMA at 1.1408 and the lower horizontal level at 1.1404 as the next key demand areas. Live readings show RSI(14) at 45 and ADX(14) at 28, signalling a defined trend, while the EMA50 sitting below the EMA200 points to a longer-term downtrend, a so-called death cross.\n\nPound and gold on the move\nThe British Pound also firmed against the dollar on Tuesday, trimming earlier losses to return to the 1.3375 area. Its next test is the 200-day Simple Moving Average, a widely watched indicator that lies a few pips below 1.3400 and has capped the Pound's recovery over the past two weeks.\n\nGold, meanwhile, reversed its recent weakness and reclaimed the ground beyond $4,000 per troy ounce on Tuesday. The precious metal's rebound gathered pace after the greenback's decline and Warsh's remarks, pushing it toward the $4,100 region.\n\nThe shifting math on a December hike\nAt the start of July, markets had settled on a December rate hike as the base case, only to spend five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip, while a re-shut Strait of Hormuz is now pushing them back in. Minutes from the June FOMC meeting landed in the middle of that round-trip, describing a world that had already stopped existing.\n\nLooking ahead, Wednesday's release of US PPI and Warsh's second testimony should keep investors engaged and help set the next direction for the dollar and EUR/USD.\n\nWhat this means for you\n• For traders: Softer US inflation and fading Fed hike odds are supporting EUR/USD, opening up short-term opportunities for those trading the euro.\n• For everyday investors: A weaker dollar has revived gold, reclaiming the $4,000 level, which is welcome news for anyone holding the metal.\n\nQuestions & Answers\n\n1. What was US inflation in June?\nHeadline CPI fell 0.4% month over month in June, and annual inflation slowed to 3.5% from 4.2%, below the 3.8% forecast.\n\n2. Why did EUR/USD rise?\nSofter US inflation and fading expectations of a Fed rate hike weakened the dollar, giving the euro fresh strength and pushing EUR/USD higher.\n\n3. What did Kevin Warsh say?\nFed Chair Kevin Warsh kept a hawkish tone, repeating the Fed's commitment to price stability and its 2% inflation goal, and described the labour market as broadly stable.\n\n4. What did Trump decide on Iran and Hormuz?\nTrump said the full blockade would apply only to vessels travelling to and from Iranian ports, and he dropped a proposed 20% fee on cargo crossing the Strait of Hormuz in favour of trade deals with Gulf states.\n\n5. What are the key technical levels for EUR/USD?\nResistance sits at 1.1434 and 1.1446, while support is seen at 1.1418, 1.1416, 1.1408 and 1.1404.\n\n6. Where did gold price go?\nGold reclaimed the level beyond $4,000 per troy ounce and moved toward the $4,100 region following the dollar's decline.\n\n7. What should markets watch next?\nInvestors are focused on Wednesday's US PPI release and Kevin Warsh's second testimony, which should shape the next move in the dollar and EUR/USD.",
  "url": "https://trendkia.com/en/market/ameriki-mahngai-ke-narama-ankaron-se-us-dollar-kamajora-euro-men-tezi-7750",
  "category": "Market",
  "publishedAt": "2026-07-15",
  "tags": [
    "EUR USD",
    "US inflation",
    "Federal Reserve",
    "Kevin Warsh",
    "forex market",
    "interest rates",
    "gold price",
    "British Pound",
    "finance"
  ],
  "language": "en",
  "site": "TrendKia"
}