The USD is trading slightly lower overall in the session, extending yesterday’s drop as yields retreat from the early-week highs amid signs that investors are starting to reposition after the run-up in US yields and paring of Fed rate cut bets.
Discover the latest US inflation trends: February sees a rise to 3.2%, while Core CPI climbs to 3.8%. Explore the implications for Federal Reserve policy and stay ahead with key economic insights
CPI week in the US starts off on a mixed note with lower US equity futures, unchanged treasuries, and a slightly weaker USD. Tomorrow’s inflation data will be the last major economic release ahead of next week’s Fed rate decision.
The USD would post its 3rd straight daily decline yesterday following Atlanta Fed President Bostic pushing back on rate cuts the prior day, fueling similar expectations for Fed Chair Powell during his testimony before Congress today.
G10 currencies are little changed to start the session and mostly softer in narrow ranges.
Initial price action to US data releases yesterday dropped the USD after PCE inflation data failed to materialize higher, coming in at expectation.
The dollar is trading higher against its G10 members ahead of today’s US PCE data release. Equities futures are trading lower with the S&P 500 on track for a weekly loss.
Trading well within recent range yesterday, the USD would recover from overnight lows to end the day flat after mixed tier 2 US data releases.
On the economic front the week is starting to heat up with Durable Goods and a few sentiment indices ahead.
