# EUR/USD rallies above 1.0800 after soft US Inflation vitalize Fed rate-cut bets for September

> EUR/USD rose above 1.0800 after the May U.S. CPI report showed softer-than-expected headline and core inflation. Markets raised the odds of a Fed rate cut in September, and the dollar index fell toward 104.50. U.S. 10-year Treasury yields dropped below 4.30%.

- Date: 2024-06-12 · published 2024-06-12T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/10801-eur-usd-rallies-above-1-0800-after-soft-us-inflation-vitalize-fed-rate-cut-bets
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

Expectations of Fed easing weakened the dollar and lowered Treasury yields, which tends to support dollar-priced commodities and reduce the cost of carrying inventories. Rate-cut bets are a meaningful driver for currency-linked commodity pricing.

## Read by commodity

- DXY: bearish ▼
- EURUSD: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| EURUSD | 2024-06-12 | 1 | +1.0% | 3.3 | Softer-than-expected May US CPI on June 12 raised Fed September cut odds, pushed the dollar index and Treasury yields lower, and lifted EUR/USD above 1.0800, which is the direct driver of the 1% rise. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2019-06-19 | [Loonie rallies as hotter inflation clips rate cut bets \| Reuters](https://feedsoft.ai/events/58829-loonie-rallies-as-hotter-inflation-clips-rate-cut-bets-reuters.md) | -1.1% | -0.9% |
| DXY | 2024-09-27 | [US dollar slumps after softer inflation, China rate cut. AUD/USD hits 18 month high](https://feedsoft.ai/events/28578-us-dollar-slumps-after-softer-inflation-china-rate-cut-aud-usd-hits-18-month.md) | +0.9% | +2.9% |
| DXY | 2022-12-14 | [EUR/USD Turns to the Fed & the ECB, After Tuesday’s Jump on Softer US CPI Inflation \| FXCM Markets](https://feedsoft.ai/events/38442-eur-usd-turns-to-the-fed-and-the-ecb-after-tuesday-s-jump-on-softer-us-cpi.md) | +0.2% | -2.0% |
| DXY | 2023-03-31 | [AUD/USD stumbles on expectations for a Fed pivot after softer US inflation data — Octa](https://feedsoft.ai/events/37122-aud-usd-stumbles-on-expectations-for-a-fed-pivot-after-softer-us-inflation-data.md) | -0.1% | +0.0% |
| DXY | 2024-07-31 | ['Need Greater Confidence In Inflation..': US Fed On Possible Rate Cut In September; What It Means For Gold, Dollar?  - Goodreturns](https://feedsoft.ai/events/29146-need-greater-confidence-in-inflation-us-fed-on-possible-rate-cut-in-september.md) | -0.5% | -1.9% |
| EURUSD | 2022-12-14 | [EUR/USD Turns to the Fed & the ECB, After Tuesday’s Jump on Softer US CPI Inflation \| FXCM Markets](https://feedsoft.ai/events/38442-eur-usd-turns-to-the-fed-and-the-ecb-after-tuesday-s-jump-on-softer-us-cpi.md) | +0.0% | +1.8% |
| EURUSD | 2026-09-01 | [Euro zone inflation rises above 3%, cementing ECB rate hike bets \| Reuters](https://feedsoft.ai/events/17697-euro-zone-inflation-rises-above-3-cementing-ecb-rate-hike-bets-reuters.md) | +0.1% | -2.4% |
| EURUSD | 2024-07-31 | [EUR/USD rises to 1.0830 as Eurozone Inflation accelerates, Fed policy eyed — Octa](https://feedsoft.ai/events/29486-eur-usd-rises-to-1-0830-as-eurozone-inflation-accelerates-fed-policy-eyed-octa.md) | +1.1% | +3.2% |

## Sources

- fxstreet.com: https://www.fxstreet.com/news/eur-usd-finds-support-as-us-dollar-edges-down-ahead-of-cpi-fed-decision-202406120936

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.