Monday, May 15, 2017

The USD dropped in the early hours of the NY session last Fri, weighed by the softer-than-expected CPI





Global Markets Daily
by Saktiandi Supaat


FX Research





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 ..

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