After the U.S CPI was released, the forex markets stayed in a sort of consolidation but with mixed reactions. Before now, there were attempts to sell dollar. However, the momentum dissolved since the data aligned with market expectations.
It could be seen that headline CPI showed a gradual decline which moved at a slow pace. Further, it is seen that core CPI indicated stagnant disinflation.
Maybe you don’t have to place any ‘bet’ on the greenback yet. This decision is cool considering FOMC rate decision and the publication of new economic projections scheduled for another day.
Now, it appears there are enough room left for potential market shifts that keeps market players careful, at least for now.
Now, it is clear that forex market movements are somewhat mixed. That’s typical of consolidation mode.
The major currencies such as dollar, Australian dollar, and Canadian dollar are leaning towards what some experts call “the softer side.”
However, we’ve seen the Japanese Yen showing some sort of strength, trying to rebound from recent pullback.
Euro and Swiss frank are also on the firmer side, but sterling appears somewhat softer. It’s influenced by U.K job data indicating further cooling in wage inflation.