Eh! CPI Data Not Out Yet, USD Has Fallen?

<p>&nbsp;Closer to the release of US inflation data tonight, the US dollar retreated further from its European session highs.</p><p><br /></p><p>At the time of writing, the dollar index which measures the greenback's performance was trading lower at 102.17 against a basket of major currencies.</p><p><br /></p><p>The US consumer price index (CPI) is projected to rise to 3.3% year-on-year in July, slightly stronger than the 3.0% post in June.</p><p><br /></p><p>Following the depreciation of the greenback, most major currencies began to take the opportunity to post gains.</p><p><br /></p><p>The euro climbed higher from its lows to trade at around 1.1020 against the US dollar at the start of the European session.</p><p><br /></p><p>While the pound currency also recorded an increase by trading higher at around the price of 1.2760 compared to the greenback.</p><p><br /></p><p><br /></p><p>UK gross domestic product (GDP) data for July will be the focus of pound currency investors tomorrow (Friday).</p><p><br /></p><p>On the other hand, the Aussie and New Zealand dollars also rose but moved not far from their respective two-month lows.</p><p><br /></p><p>Additionally, the Canadian dollar continued to strengthen against the US dollar, supported by world crude oil prices rising to new highs.</p><p><br /></p><p>Despite falling against most major currencies, the currency king managed to conquer a one-month high against the yen.</p><p><br /></p><p>It followed Japan's Producer Price Index (PPI) data which rose 3.6% year-on-year in July, down from 4.1% in June but slightly higher than market expectations of 3.5%.</p>