DXY Supported Ahead of US May CPI, ING Says
ING’s Chris Turner notes the US Dollar is holding recent gains as markets await the May CPI report, with firm core inflation expected to keep Fed rate hike pricing alive.
The US Dollar index (DXY) remains supported near recent highs as traders focus on the upcoming May Consumer Price Index (CPI) release, according to ING’s Chris Turner.
Turner highlights that expectations of persistent core inflation should keep the market pricing in further Federal Reserve rate hikes, providing a floor for the greenback in the near term. The DXY has held onto gains ahead of the data, with the report likely to dictate the next directional move.
Market participants are watching for any signs that inflation is slowing enough to pause the tightening cycle, but the current consensus leans toward another firm reading that reinforces the hawkish stance.
Source: FXStreet Forex News