Today brings the key data of the week – the US Consumer Price Index (CPI) report. Economists at MUFG Bank analyze how inflation figures could impact the US Dollar (USD).
Limited scope for Dollar weakness
A good inflation print today will likely be enough to halt the move higher in short-term yields but it would take a substantially weaker CPI print to prompt a deeper plunge in yields that would drag the Dollar weaker.
A March rate cut looks like a lost cause now but a very weak CPI print will see May very much back in play. But with the ECB still not dismissing an April cut completely we see limited scope for Dollar weakness.
A strong CPI print looks more likely to prompt a bigger Dollar move to the upside as a May cut would be put in further doubt.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.