The US Consumer Price Index (CPI) for July showed a monthly increase of 0.2%, meeting expectations. This steady report is being closely watched by financial markets. In currency news, the EUR/USD pair approached highs near 1.1700, as the US Dollar weakened. Remarks about possible rate cuts from the US Federal Reserve are affecting the Dollar’s value.

GBP/USD and Economic News

GBP/USD climbed to around 1.3530, benefiting from the weaker Dollar and attention on US CPI data. Meanwhile, the UK’s employment report is attracting interest from market watchers. Gold has rebounded to over $3,350 due to pressure on the US Dollar and mixed yield trends. On the other hand, Pi Network’s value has dropped below $0.4000, with technical indicators suggesting reduced market activity. The Bank of England lowered interest rates by 25 basis points to 4%. The central bank noted that the current cycle of rate cuts may be coming to an end, especially due to rising inflation concerns. For those trading EUR/USD, a list of top brokers for 2025 offers competitive spreads and advanced trading platforms, ideal for both beginners and experienced Forex traders.

July Consumer Price Index and Market Outlook

The July Consumer Price Index has met expectations with a 0.2% monthly gain, bringing the annual inflation rate to 2.8%, closer to the Federal Reserve’s target. There is a high chance of a rate cut in September, with futures markets currently pricing in an 85% probability of this happening. This situation is putting pressure on the US Dollar, which makes it essential to monitor EUR/USD testing the 1.1700 resistance level. We haven’t seen these levels sustained since the first quarter of 2024. The European Central Bank’s decision to keep rates steady at 3.75% supports using derivatives to favor the Euro over the Dollar in the coming weeks. Similarly, GBP/USD has climbed to around 1.3530, benefiting from the Dollar’s weakness. Additionally, the Pound is backed by strong domestic data, as last week’s UK employment report showed a surprising decline in jobless claims. This dual strength makes bullish strategies on this pair appealing in the short term. We should also note that the Bank of England recently cut rates by 25 basis points to 4.00%. While this is a move to ease, the bank’s indication that the cutting cycle may be nearing its end suggests potential strength for the Pound later this year. Therefore, short-term and long-term strategies for trading the Pound will need to differ. Gold’s rise past $3,350 an ounce reflects the weakened Dollar and expectations of lower US interest rates, making this price nearly 40% higher than the peak observed in 2024, indicating strong demand for safe-haven assets. We should consider any price dips as buying opportunities for call options or futures contracts. On a more speculative note, Pi Network’s value remains below $0.4000 amid low market activity. Given the low liquidity hinted at by technical indicators, engaging in derivatives for this asset involves high risk. It may be wise to observe this market from a distance. Create your live VT Markets account and start trading now.

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