Aussie underperforms after inflation data miss

Daily Analysis - 25/07/2018

Euro in focus ahead of Trump – Juncker meeting  

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Markets are focused on a key meeting between U.S. President Donald Trump and European Commission President Jean-Claude Juncker in Washington D.C. later today, where trade issues will be discussed. The euro is flat against the dollar ahead of this risk event. Elsewhere, the Australian dollar was the worst performing major currency after domestic inflation data missed forecasts.

Aussie slumps after CPI


The AUDUSD pair slipped below $0.7400 after data earlier on Wednesday showed inflation remained stubbornly low in the previous quarter despite fairly robust economic growth.

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Sterling holds gains after May takes control


The pound rose on Tuesday after news that UK Prime Minister Theresa May said she would now lead negotiations with the European Union, sidelining Brexit Minister Dominic Raab.  GBPUSD rose above $1.3600 after the news and is consolidating near this level.

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Oil on the rise


WTI oil prices are being supported after the API inventory report on Tuesday showed a surprise drawdown. All eyes are now on the EIA inventory report due later today, which also forecasts a drawdown in last week’s stock piles. Could oil rise to $70 a barrel?

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