Weakness continued for the US Dollar as it sold off overnight despite inflation data coming in at a 40-year high.
US CPI for December grew 7% YoY, exactly in-line with what the market had been anticipating. Traders seemed to take this as an opportunity to unwind long positions in the greenback, as the result likely confirms the Fed will not look to further accelerate their plans to raise interest rates.
As a consequence, gold and other major currencies were trading significantly higher against the USD, with a number of forex pairs breaking out overnight.
For a deeper analysis into the various markets benefiting from the news and key levels to trade off, check out this article by one of our senior analysts: