Hawkish Fed Expectations Help USD Extend Gains

The greenback has crept higher in Asia amid hawkish Fed repricing provoked by above-forecast U.S. CPI data released Thursday. The data increased pressure on policymakers to take action in a bid to curb runaway inflation. Fed's Bullard fanned expectations of a more aggressive tightening cycle, as he flagged the need for 100bp worth of rate increases by July, expressed support for a bold 50bp hike and raised the prospect of an inter-meeting rate rise.

• Potential for more resolute steps from the Fed has reignited market anxiety, denting high-beta currencies in early Asia trade. The yen has caught thanks to that cautious feel, with Japanese markets shut for a public holiday.
• Preliminary quarterly growth data & monthly economic activity indicators out of the UK will take focus after Asia hours, with ECB's Elderson due to take part in a panel discussion.