- Analytics
- News and Tools
- Market News
- US CPI Preview: An upside surprise will add further impetus for the Dollar over the short-term – MUFG
US CPI Preview: An upside surprise will add further impetus for the Dollar over the short-term – MUFG
Today brings the top of the top-tier data from the US – the Consumer Price Index (CPI) report. An upside surprise could provide support to the Dollar, economists at MUFG Bank report.
Momentum favouring the US Dollar at the moment
“An upside surprise today may still not shift the dial too much. Certainly, if there are upside surprises in more volatile components today, the reaction may be more muted than in previous CPI overshoots. Nonetheless, there must be a risk of a further liquidation of stale EUR/USD long positions.”
“The upward momentum has faded and the compelling ECB/Fed divergence trade is well priced and not as compelling following recent data flow. Risks in that regard feel more to the downside. So with the momentum favouring the US Dollar at the moment an upside surprise will add further impetus for the Dollar over the short-term.”
“With another CPI print before the FOMC meeting in June, it would probably take a large 0.2ppt upside surprise or more to see a rates and FX move that is sustained and meaningful in size.”
See – US CPI: Banks Preview, hot inflation still the norm
© 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
