The US dollar came under pressure on Wednesday morning after two key economic reports missed Wall Street expectations.
Consumer prices grew at a year-on-year rate of 1.9 per cent in May, the labour department said, down sharply from the 2.2 per cent rate the previous month and missing estimates of 2 per cent. The core gauge, which excludes food and energy prices, was up 1.7 per cent on the same basis, compared with expectations that the rate would hold steady at 1.9 per cent.
Meanwhile, retail sales dropped 0.3 per cent, according to the commerce department, badly missing estimates that it would hold steady. Excluding the volatile autos component, sales were down by the same margin, versus expectations of a 0.1 per cent pick-up .
The data come just hours before the Federal Reserve releases its latest policy decision. Analysts expect the central bank to raise rates for the second time this year.
The euro jumped 0.4 per cent on the dollar after the news, with the pound up 0.2 per cent. The buck was off by 0.4 per cent against the Japanese yen.