Free Trial

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Greenback Trading With Supportive Tone As CPI Dust Settles

  • Pressure on the front-end of the US yield curve is keeping the USD underpinned on Tuesday. Despite the initial volatile spin-cycle following the US inflation data, the greenback is trading on a surer footing approaching the end of the European session.
  • Weakness in equities is acting as an additional USD tailwind. NZD continues to be one of the weakest performers in G10 amid the dampened sentiment and following inflation expectations data overnight. 2y inflation is seen at 3.30% for Q1, down from 3.62% late last year - feeding into the view that domestic inflation may have peaked for now.
  • The higher US yields are naturally weighing on the JPY and USDJPY is making another push above 133 in recent trade. As highlighted, a sustained break of the 50-day EMA (intersects today at 132.71) is required to suggest scope for an extension higher that would expose 134.77, the Jan 6 high.
  • In EURUSD, prices remains above support at 1.0674, the 50-day EMA, for now. This represents a key short-term level and a clear break of the average would instead strengthen the bearish cycle and initially expose 1.0634, the Jan 9 low.

To read the full story

Why Subscribe to


MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.