EUR/USD retreats as US Dollar Index trims losses

The US July PPI drops unexpectedly in July while jobless claims hit monthly highs. The US dollar remains in negative territory, even as US yields rise.

The EUR/USD pair is up for the fifth consecutive day, holding under Wednesday’s top. The pair has failed to break Wednesday’s highs around 1.0355 and pulled back. It is hovering around 1.0325 as the US dollar attempts to recover during the US trading session as US yield surge. Other indicator does show a slowdown in US inflation

Data released on Thursday showed the Producer Price Index in the US dropped by 0.5% in July, and the annual rate slid to 9.8%, against expectations of a 0.2% advance. On Wednesday, it was reported the Consumer Price Index was unchanged in July against expectations of a 0.2% gain.

On Thursday, a report from US Labor Department informed Initial Jobless Claims rose to 262K in the week ended August 6, the highest level since November. Continuing Claims hit monthly highs.