EUR/USD, GBP/USD, DXY Price Forecast: DXY Recovers to $104.50; More Gains Ahead?

On July 11, the UK GDP m/m report showed a 0.4% growth, surpassing the expected 0.2%, which provided support to the pound. Conversely, US data showed mixed results. The Core CPI m/m came in at 0.1%, below the expected 0.2%, while the CPI m/m declined by 0.1% against an expected 0.1% increase.

Year-over-year CPI fell to 3.0%, lower than the anticipated 3.1% and previous 3.3%. Unemployment claims dropped to 222K, better than the forecasted 236K.

The GBP/USD closed at $1.29054, down 0.08%. Despite the positive GDP figures, the pound struggled amid broader market movements. The EUR/USD was at $1.08671, down 0.02%, reflecting subdued US inflation and unemployment data. The Dollar Index inched up to $104.517, up 0.02%, as mixed US economic data kept it buoyant.

Events Ahead

Looking ahead to July 12, the EUR/USD will be impacted by Germany’s WPI m/m expected at 0.2% and France’s Final CPI m/m forecasted at 0.1%. Additionally, the Bank of England’s Quarterly Bulletin will be in the spotlight for GBP/USD traders.

In the US, the Core PPI m/m is anticipated at 0.2%, and PPI m/m at 0.1%. These figures, along with the Prelim University of Michigan Consumer Sentiment expected at 68.5 and Inflation Expectations at 3.0%, will likely influence the Dollar Index. A stronger-than-expected PPI could bolster the dollar, impacting EUR/USD and GBP/USD.