CPI Beats Forecast, Dollar Weakens as Fed Chair Warsh Notes Inflation Miss
US CPI came in better than expected but remains above the Fed's target for the fifth consecutive year. The dollar weakened as currencies resumed upside breakouts, ignoring Fed Chair Warsh's commitment to addressing inflation.
The latest US CPI print exceeded forecasts, though inflation remains above the Federal Reserve's target for the fifth year running.
Market participants were initially surprised that the combination of rising US yields and escalating geopolitical tensions only had a one-day impact on currency markets. Yesterday, currencies resumed their upside breakouts against the dollar, withstanding comments from new Fed Chair Warsh, who reiterated a commitment to ending the extended period of above-target inflation.
Source: FXStreet Forex News