Market News

USD CPI Gives Control To The Bears

 
Updated 1 week ago
 

A marked reaction to the US CPI number as we miss on expectations in the core rate.

The is responding to Treasuries here, so those looking at the modesty in the data deviation will have to concern themselves with the reaction in the rates market, and on this we see the US 10yr Note easing back to sub 2.95% which has naturally impacted on USD/JPY. 

The lead spot rate is now down below 109.50, but we expect to see some support ahead of 109.00 for now, but with the USD also losing steam elsewhere across the board - EUR/USD now above 1.1900 - there is also an element of exhaustion in the broader USD move seen recently.