- Analytics
- News and Tools
- Market News
- USD exchange rates might react to CPI surprise in an unusual manner – Commerzbank
USD exchange rates might react to CPI surprise in an unusual manner – Commerzbank
The publication of the May inflation data by the Bureau of Labor Statistics is expected for the US today. Monthly prices are projected to rise 0.7%, more than double their 0.3% gain in April. The US dollar might react to any deviation from the forecast in an unusual manner, economists at Commerzbank report.
Risk of hard landing is the most relevant USD-dampening factor
“If the result is anything between +0.6% and +0.8%, that is likely to be within the market’s expectations. If it is much less, in conjunction with the low April result, that might be interpreted as a trend reversal by some observers.”
“The risk of a hard landing is likely to be the most relevant USD-dampening factor at present. It is difficult for anyone to imagine (a) that inflation pressure will ease on its own accord and how (b) the Fed is to stop inflation without a ‘hard landing’. Anything that then smells of inflation pressures easing, after all, is positive.”
“There is a chance that USD exchange rates might react to surprises in an unusual manner.”
See – US CPI Preview: Forecasts from eight major banks, inflation peaked but faces challenges to moderate
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
