The US consumer price index rose by 0.1% in June on a monthly basis, while rising by 2.9% on a yearly basis, the biggest rise since February 2012, in reference to the continued accumulation of inflationary pressures, which will keep the Fed on the path of monetary tightening gradually.
The US dollar was little affected by the data, with the dollar index at stabilized at 94 levels below the 61.8% Fibonacci level.
Excluding food and energy prices, the CPI rose by 0.2% on a monthly basis and by 2.3% YoY. The Fed is monitoring a different measure of inflation, personal consumption expenditure (PCE), which reached its target in May at 2%, and there are expectations that the index will overshoot.
The pound rose today after the issuance of a Brexit white paper document which may help resume negotiations on the trade between the European Union and Britain. British Prime Minister Theresa May today will set out a blueprint of its plan for a free-trade zone that the government described as initial but angered many in her party.
The Pound hit a daily high of 1.3244 before dropping to the 1.3220 level. Sterling hit its weakest quarterly performance against the US dollar since the vote on the EU membership referendum because of the economic slowdown and the strength of the US dollar.
