The USD is consolidating with a firmer bias ahead of key US CPI data, supported by a general decline in global risk appetite. Major G10 currencies like the EUR and JPY are showing weakness as central bank dynamics and post-election positioning shift.
Key Takeaways
- 1.The USD is firmer as global risk appetite weakens, with markets anticipating US CPI data to provide clarity on the inflation path.
- 2.The ECB has entered a 'monitoring mode' regarding the Euro's strength, signaling trade concerns as a major downside risk.
- 3.The Japanese Yen is experiencing its first significant pullback since the elections, despite hawkish signals from the Bank of Japan.
Table of Contents
- Analyst Team
- Overview
- Soft Risk Mood Lifts USD
- USDCAD (1.3623)
- EURUSD (1.1857)
- GBPUSD (1.3606)
- USDJPY (153.32)
- TODAY'S CALENDAR
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Authors
Shaun OsborneEric Theoret
Securities
DXYUSDJPYEURUSDGBPUSDUSDCAD
Themes
Central Bank Communication (ECB/BoJ)Risk-Off Sentiment and Safe HavensUS Inflation and Fed Policy Expectation
Regions
North AmericaEuropeUKUnited StatesCanadaJapan