The US dollar holds near year-to-date highs ahead of the May PCE deflator release. Meanwhile, strong earnings from Micron Technology have buoyed sentiment in the AI and technology sectors.
Key Takeaways
- 1.The US dollar remains strong near year-to-date highs as the market awaits critical US PCE inflation data.
- 2.Micron Technology reported strong earnings, boosting investor sentiment in the AI/tech sector and helping South Korean stocks rebound.
- 3.The US rate market is pricing in more rate hikes this year, contrary to the expectation that the Fed might avoid tightening further despite 'tough talk'.
Table of Contents
- USD remains close to year-to-date high ahead of latest US inflation update
- USD: Fed policy reaction function & AI stock performance in focus
- IS USD ANTICIPATING A BIGGER FED POLICY SHIFT OR OVERSHOOTING?
- USD: How FX reacts to PCE surprises
- USD/JPY PERFORMANCE AFTER US CORE PCE DEFLATOR RELEASES
- KEY RELEASES AND EVENTS
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Authors
Lee HardmanAbdul-Ahad Lockhart
Securities
USDJPYMicron TechnologyEURUSD
Themes
AI infrastructure build outInflation persistence
Regions
GlobalUnited StatesSouth Korea