ForexLive Americas FX news wrap: Dollar slumps on soft inflation
FX was the hottest market in what was a surprisingly busy session. Market closures in many regions might have kept a cap on trading but a soft inflation print in the PCE report kicked off heavy US dollar selling that was probably exaggerated by thin market conditions.
Cable was the big beneficiary as it reclaimed nearly 50% of its recent decline in a rip as high as 1.4283 from 1.4160 at the start of US trading. The initial move after the PCE report was light but it extended and extended. A dip down to 1.4225 came after the European 'close' but it's back to 1.4251.
The euro hit buy stops above 1.1170/80 after the PCE report and continued up to 1.1220 in steady buying over the course of two hours. It retraced back to 1.1185 but has consolidated around 1.12 since as it breaks a six-day losing streak.
