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Dollar Drops Versus Most G-10 After US CPI Figures: Inside G-10
Tuesday, 12 August 2025 20:02 WIB | US DOLLAR |DOLLAR

A Bloomberg gauge of the dollar fell after US consumer inflation figures largely matched expectations, sending Treasury yields lower across the curve. Traders added to bets on a September interest-rate cut by the Federal Reserve. 

The Bloomberg Dollar Spot Index down 0.3%; two-year Treasury yield falls 6bp to 3.71%

US headline CPI rose 0.2% MoM (0.2% forecast); core CPI rose 0.3% MoM (0.3% expected)

Headline YoY CPI came in at 2.7% versus 2.8% forecast

Read more: US Core CPI Picks Up to Fastest Pace Since January on Services

"Inflationary pressures look very manageable," Tiffany Wilding, economist at Pimco, told Bloomberg Television. "For a Federal Reserve, that is a very good sign"

"The headline miss may be enough to check USD gains in the short run," said Shaun Osborne, chief currency strategist at Scotiabank

Swaps traders price some 90% of a quarter-point cut at Fed's next meeting in September

One-month implied volatility on BBDXY hovers near lowest point in a year, trades around 7.08%

EUR/USD rallies 0.3% to 1.1651

Overnight volatility rises as much as 210bps to 11.26% before paring the advance; marks lowest hedging cost since October for a day when US inflation is released

Read more: Muted Euro Volatility Ahead of US Inflation as Bullish Bets Ebb

GBP/USD gains 0.5% to 1.3506

Earlier, reversed modest losses after data showed the UK jobless rate came in at 4.7% for the three months through June, matching economist estimates

Read more: UK Loses Fewer Jobs Than Expected in Wake of Reeves Tax Hike

EUR/GBP is set for its fourth daily drop, the longest losing streak since late May; the pair is down 0.2% to 0.8629

The Australian dollar dips after the nation's Reserve Bank cut interest rates in a widely expected move and projected a moderation in inflation

AUD/USD down 0.1% to 0.6508 after the RBA reduced the official cash rate for a third time this year

Governor Michele Bullock said the RBA has no point estimates on where policy might end up

USD/JPY falls 0.1% to 148.05; USD/CAD steady at 1.3780

You want more news on this market? Click here for a curated First Word channel of actionable news from Bloomberg and select sources.

Source: Bloomberg

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