Dollar sideways, yen under watch ahead of key CPI release

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The dollar consolidated as investor attention fixed on a key inflation report due out of the U.S. later in the day. The yen remained pinned a whisker away from what markets believe to be the line in the sand for Japanese authorities to intervene. The main market focus is U.S. consumer price inflation for March. Futures traders reduced bets to the lowest level since October, around 60 basis points in rate cuts this year. U.S. interest rate futures set the odds of the first cut occurring in June at about 60%. A solid CPI number will likely have markets pricing out a June cut, which could see the dollar rising sharply. On the other hand, even if the data comes in below expectations, June bets will probably remain little changed as hurdles remain. The U.S. dollar index held firm at 104.10. The yen remained close to its 34-year low versus the dollar. The euro was steady at $1.085575. Sterling was mostly flat at $1.26760. The Reserve Bank of New Zealand is expected to leave rates at 5.5% at its monetary policy meeting on Wednesday. The kiwi rose 0.07% versus the greenback to $0.60655. The Australian dollar ticked up 0.05% to $0.6630.

#Dollar #Yen #Cpi #Inflation #InterestRates #ForeignExchange

https://whtc.com/2024/04/09/dollar-sideways-yen-under-watch-ahead-of-key-cpi-release/