US inflation figures accelerate dollar slump

Yesterday, the recent dollar weakness continued on the exchanges with the greenback losing circa 0.6% against the euro, sterling and yen. US CPI inflation data printing broadly in line with the consensus showing headline US inflation rising to 7% in December. Although this was expected, it is the highest level in almost 40 years. However, currency markets appeared to have been braced for a higher than anticipated reading, with the dollar moving lower following the release. 

As we get underway this morning, the dollar slump is evidenced by EUR/USD opening at the midpoint of the $1.14-1.15 range, with GBP/USD changing hands up above the $1.37 handle. EUR/GBP continues to trade just below the midpoint of 83-84p. 

Looking ahead to today, there is a quiet data schedule on both sides of the Atlantic once again. However, speeches from a raft of US Fed officials will garner close attention from USD traders, as the central bank continues to move towards tightening monetary policy.