The US dollar showed a depreciation pattern after the latest US inflation data report was published in the New York session yesterday.
Analyzing the report, the US annual consumer price index (CPI) reading for May recorded an increase to 2.4% from 2.3% the previous month, but did not reach market expectations of 2.5%.
Monthly inflation decreased to 0.1% compared to forecasts to remain at 0.2% while the core inflation reading decreased to 0.1% compared to forecasts to increase to 0.3%.
Analysts see the slow price increase as a sign that the Federal Reserve (Fed) will lower interest rates faster than previously expected.
The US dollar, however, was not much affected by the published data, but rather reacted to the development of US-China trade talks that took place in London for 2 days.
President Donald Trump announced that negotiations with China have been completed with Beijing ready to resume supplies of rare earth minerals and magnets while the US will allow Chinese students to attend its colleges and universities.
For trade, the White House said the agreement allows the US to impose a 55% tariff on goods imported from China.
This includes a 10% basic reciprocal tariff, a 20% tariff on fentanyl trafficking and a 25% retaliatory tariff on existing tariffs.
China will impose a 10% tariff on US imports.
Market focus for today (Thursday) will be on the release of UK economic growth data in the European session and in the New York session, US producer inflation (PPI) data will be observed.
