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The higher U.S. consumer price may support the dollar in a short term period

Inflation climbs for third straight month: U.S. consumer prices rose 5.4% in June from a year ago, again higher than expected.

The dollar became stronger after today's key report for U.S. inflation. The Dollar gained about 55 pips after the release of the news.
This year expects to see the highest inflation in the last decade. As the dollar gains today by this news in a mid and long-term period the dollar may lose against the major currencies.
But the higher inflation is a signal that Fed policy to hike U.S. interest rates is close. The Fed last month announced that it will make two interest rate hikes with the minimum 0.25% but this high inflation may push the Fed to make higher than expected rates hike.

At the same time the inflation in the biggest European economy is 2.3% the same as expected and the same as in prior month of year base.
The Germany Consumer Price Index was released earlier today of 2.3% of year base and 0.4% for June the same as expected and prior month too.
For tomorrow (Wednesday July 14th) the most important event is Fed's Chair Powell testifying  schedule or 16:00 GMT.

The news for U.S. Consumer prices may strengthen the Dollar in a short term period. Our prediction is to see EURUSD at levels of 1.1600.

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