# USD correction accelerates after a sharp downward surprise in US CPI - FxExplained

> US CPI fell to 3.0% year on year in June, below the 3.1% forecast, and core CPI fell to 4.8% against 5.0% expected. Treasury yields dropped sharply and the dollar weakened.

- Date: 2023-07-13 · published 2023-07-13T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/9984-usd-correction-accelerates-after-a-sharp-downward-surprise-in-us-cpi-fxexplained
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A downside CPI surprise lowers the likelihood of further Fed hikes, pushing yields and the dollar lower. A weaker dollar tends to support dollar-priced grain and oilseed prices.

## Read by commodity

- DXY: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| DXY | 2023-07-12 | 1 | -0.9% | -3.5 | Describes the downside CPI surprise (core 4.8% vs 5.0%) that sent Treasury yields and the dollar lower, the same catalyst, though dated a day after the move. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2026-01-01 | [Dollar falls versus yen after smaller-than-expected rise in US inflation, euro eases](https://feedsoft.ai/events/21690-dollar-falls-versus-yen-after-smaller-than-expected-rise-in-us-inflation-euro.md) | +0.3% | -1.5% |
| DXY | 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) | -0.5% | -1.9% |
| 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 | 2020-02-21 | [AUD/USD: Dollar Drops after Shock US Services Contraction - Currency Live](https://feedsoft.ai/events/54853-aud-usd-dollar-drops-after-shock-us-services-contraction-currency-live.md) | +0.1% | +6.7% |
| DXY | 2024-10-31 | [Euro Outperforms Dollar and Pound After Inflation and GDP Surprises](https://feedsoft.ai/events/28072-euro-outperforms-dollar-and-pound-after-inflation-and-gdp-surprises.md) | +0.7% | +1.4% |

## Sources

- fxexplained.co.uk: https://www.fxexplained.co.uk/forex-articles/current-market-analysis/usd-correction-accelerates-after-a-sharp-downward-surprise-in-us-cpi/

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