US Dollar Gains as Markets Stay Hawkish After In-Line CPI
ING strategists say the dollar strengthened after US CPI came in line with expectations, as markets had braced for a hotter reading.
DXY
The US dollar moved higher after the latest US CPI release, according to ING strategists Francesco Pesole, Frantisek Taborsky and Chris Turner. They noted that an in-line inflation print was enough to support the currency because traders had positioned for a hotter number.
That positioning dynamic kept market expectations on the hawkish side, even without an upside surprise in the data. The move suggests the dollar remains sensitive to inflation data and to how market positioning is set around the release.
Source: FXStreet Forex News