USD traded sharply lower today, with DXY Index witnessing -0.11% since opening, tumbling to 92.153. Markets are anxiously waiting for the latest inflation data which will be released later today. US June CPI is expected to show a slowdown in inflation, currently forecasting at 0.4%. While investors are worried about US inflation growth, UK has recorded impressive results towards full reopening. Q2 sales were 28.4% higher on a YoY basis, the largest gain since 1995. With such impressive growth, GBPUSD rose sharply by 0.15% to 1.39.
As we move towards the second half of 2021, global uncertainties still exist. China’s customs administration spokesperson Li Kuiwen made comments today that, the country’s trade may slow down in the coming months. As the global economy recovers from the pandemic, managing inflation will become the key task for many central bankers.