USD/CAD pair falls slightly amid rising oil prices

Key Movers

The US dollar has been resilient, showing a decent rally despite a surprise uptick in the ever-so-sticky US inflation data released yesterday. It appeared that markets wrote off the inflated Consumer Price Index (CPI) numbers as a one-off increase which has led to little effect on the USD. In data news, the weekly Mortgage Applications Index contracted by 2.3%, coming from a positive 3.7% last week. The benchmark 10-year US Treasury Note traded near 4.29% this morning, a touch softer from its peak on Tuesday at 4.33%. Markets may take more cues from the upcoming speeches of two US Federal Reserve speakers, Chicago Fed member Austan Goolsbee and Fed’s Vice Chairman Michael Barr, today. The US Dollar Index (DXY) was last seen at around 3 months high, trading near the 104.76 levels.

The EUR/USD struggled to find ground and rebound from three-month lows. The euro faced tough challenges after the seasonally adjusted Eurozone Gross Domestic Product (GDP) data was published. This data showed consistency by meeting the market expectations, which weakened the Euro. The preliminary seasonally adjusted Eurozone GDP remained unchanged at 0.1% year-over-year, aligning with market expectations. The EUR/USD pair was last seen trading at 1.0726 levels.

The British pound was seen trading on the back foot due to the softer-than-expected UK CPI data, which indicated a bearish economic outlook. The annual headline and core CPI rose steadily by 4% and 5.1%, respectively, while the monthly headline figure deflated significantly by 0.6%. Market players eagerly await the speech from BoE Governor Andrew Bailey to gather renewed guidance on interest rates after the latest inflation data release. The GBP/USD pair was last seen trading at 1.2555 levels.