US Inflation rises more than expected in June. US Dollar lower in forex trading today.

By CountingPips.com

Consumer price inflation in the U.S. rose by more than expected in June according to a report released today by the U.S. Department of Labor. The consumer price index increased by a seasonally adjusted 0.7 percent in June as a rise in gasoline prices boosted inflation. The June cpi rose more than the 0.5 percent rise economic forecasts were expecting and follows a 0.1 percent gain in May. The annual rate of increase for cpi, despite the monthly increase, is 1.4 percent lower than the June 2008 level.

Core cpi, excluding volatile energy and food prices, increased by 0.2 percent in June following a 0.1 percent increase in May.  On an annual basis, core prices are 1.7 percent higher than June 2008. Forecasts were expecting a 0.1 percent rise for the month and an annual rise of 1.7 percent.

Energy prices pushed prices higher as the energy index rose by 7.4 percent in June with the gasoline index rising by 17.3 percent.  The energy index had increased by 0.2 percent in May after decreasing in both April and March.  The food index was unchanged in June after four straight months of decline.

US Dollar falls lower in Forex Trading today.

The U.S. dollar has been mostly lower today against the other major currencies in the spot forex market.  The dollar has been weaker versus the euro, British pound, Australian dollar, Canadian dollar, Swiss franc and New Zealand dollar while trading higher versus the Japanese yen.

The euro has advanced versus the dollar as the EUR/USD has increased past the 1.4100 threshold today to trading at 1.4110 at 1:31 pm after opening the day at 1.3983 at 00:00 GMT according to currency data from Oanda.

The British pound has risen today as the GBP/USD has advanced from its 1.6326 opening exchange rate to trading at 1.6431 usd per gbp.

The dollar has traded higher versus the Japanese yen today and the pair is trading at 94.32 after opening at the day at the 93.56 exchange rate.

The dollar is falling versus the Canadian loonie for the third day in a row as the USD/CAD trades at the exchange rate of 1.1176 after opening the day at 1.1341.

The dollar has also fallen against the Swiss franc as the USD/CHF trades at 1.0754 after opening at 1.0878 today.

The Australian and New Zealand dollars have both advanced higher today against the USD. The AUD/USD has climbed from its 0.7941 opening rate to trading at 0.8032 later this afternoon.  The NZD/USD has increased from its 0.6409 opening to trading at 0.6505 later today.

EUR/USD Chart – The Euro rises today versus the US Dollar in forex trading and advancing past the 1.4100 threshold.