US Dollar Plummets as US Inflation Cools and Dollar Selling Persists

The US dollar experienced a significant decline after weaker-than-expected US inflation data, leading to falling yields and reducing the likelihood of further central bank tightening. As a result, the euro and British pound reached multi-week highs against the greenback, while gold prices consolidated above the 200-day moving average and the Nasdaq 100 surged to its highest level in almost four months. Traders are anticipating aggressive rate cuts for 2024, which could lead to more downside for yields and the US dollar, and further gains for precious metals and stocks. Technical analysis suggests potential upward trajectories for EUR/USD, GBP/USD, the Nasdaq 100, and gold prices.