Greenback Shows Some Weakness Pre-CPI
The greenback trades with a mild bearish bias ahead of the release of U.S. CPI data today, which will factor into the debates on Fed terminal rate expectations. Headline consumer inflation may have eased to +7.9% Y/Y last month, according to a Bloomberg survey. The BBDXY has now shed 0.33% from yesterday's peak.
- The remainder of the G10 FX basket trades in a mixed manner, with little in the way of fresh macro headline flow to give risk sentiment clear directionality. The Aussie dollar trades on a slightly softer footing, while the yen outperforms in the Asia-Pac space.
- Greenback weakness is giving some reprieve to offshore yuan, with USD/CNH trading ~140 pips below neutral levels ahead of the PBOC fix.
- Apart from U.S. inflation figures, today's data highlights include U.S. jobless claims& Norwegian CPI. There is plenty of central bank inbound, from Fed, ECB & BoE officials. Comments from BoJ's Kuroda and RBA's Bullock are hitting the wires as we type.