The U.S. dollar erased its early decline against its most major counterparts in the European session on Wednesday, despite a data showing a little higher than expected slowdown in nation’s core inflation in May that spurred hopes for a Fed rate cut in the coming months.

Data from the Labor Department showed that core inflation rose 0.1 percent for the fourth consecutive month. Economists had expected core prices to rise by 0.2 percent.

The CPI inched up by 0.1 percent in May after rising by 0.3 percent in April. The uptick in prices matched economist estimates.

Overnight, U.S. President Donald Trump blamed the Fed for high interest rates, as the U.S. is struggling from the devaluation of the euro and other currencies against the dollar.

The U.S. has low inflation, Trump said, calling it as “a beautiful thing.”

The currency declined against its most major counterparts in the Asian session following Trump’s remarks.

The greenback climbed to 1.1310 against the euro, from a 5-day low of 1.1344 hit at 4:00 am ET. Next key resistance for the greenback is seen around the 1.11 region.

The greenback bounced off to 108.49 against the Japanese yen, following a 5-day decline to 108.22 at 5:00 am ET. The greenback may test resistance around the 110.00 level, if it rises again.

Data from the Bank of Japan showed that Japan producer prices fell 0.1 percent on month in May.

That missed forecasts for a flat reading following the 0.4 percent increase in April.

The greenback strengthened to a 6-day high of 0.9953 against the Swiss franc, up from Tuesday’s closing value of 0.9924. The currency is seen finding resistance around the 1.02 region.

The U.S. currency edged higher to 1.3305 against the loonie and held steady thereafter. The pair ended Tuesday’s trading at 1.3283.

The greenback extended early rise to hit a 9-day high of 0.6942 against the aussie, compared to 0.6962 hit late New York Tuesday. The greenback is poised to find resistance around the 0.68 region.

On the flip side, the greenback fell to a 5-day low of 1.2759 against the pound, compared to yesterday’s closing value of 1.2720. On the downside, 1.29 is possibly seen as the next support level for the greenback.

The greenback retreated to 0.6590 against the kiwi, from a 9-day high of 0.6566 seen at 1:15 am ET. The greenback is likely to find support around the 0.68 region.

The U.S. monthly budget statement for May is due in the New York session.

The material has been provided by InstaForex Company – www.instaforex.com