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EUR/USD Volatile on US CPI, Trump’s Tweet

May 12, 2020 by

EUR/USD was volatile today, climbing after the release of the US Consumer Price Index but retreating a bit afterward. The CPI registered a huge drop, which explains the weakness of the dollar. The greenback remained soft after US President Donald Trump tweeted about benefits of negative interest rates and that the United States should use them.

US CPI fell 0.8% in April on a seasonally adjusted basis, slightly more than analysts were expecting — 0.7%. The index fell 0.4% in the prior month. (Event A on the chart.)

Treasury budget deficit widened from $119.0 billion in March to $737.9 billion in April. That is compared with the median forecast of a $729.7 billion deficit. (Event B on the chart.)

If you have any comments on the recent EUR/USD action, please reply using the form below.

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