The USD dropped in the early hours of the NY session last
Fri, weighed by the softer-than-expected CPI release for Apr. Inflation
rose 0.2%m/m in the month, from the previous decline of -0.3%. Core
inflation slowed to 1.9%y/y from previous 2.0%. The softer numbers could
continue to keep investors from pricing more aggressive Fed tightening
scenario. The probability of rate hike as priced in by the Fed Funds
futures is 97.5%. Further USD strength needs to come from more talks of
balance sheet ..