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Strong Greenback Gains Following US CPI Weighs On EM FX Basket

EM FX
  • Strong broad-based gains for the greenback in the aftermath of the higher-than-expected US CPI has been bolstered by the significant break of 152.00 in USDJPY in G10. The focus on sticky supercore inflation and the subsequent pricing of fewer Fed rate cuts for 2024 is weighing on the emerging market FX basket.
    • After giving back the majority of gains following the earlier poll results, USDZAR trades back to session highs above 18.63.
    • USDMXN also a notable outperformer, rising close to 1% off the lows to briefly print a session high of 16.4556.
    • USDBRL holds the 5.00 handle support well and trades up to 5.0444 while USDCLP rises 0.60% to 947.00.
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  • Strong broad-based gains for the greenback in the aftermath of the higher-than-expected US CPI has been bolstered by the significant break of 152.00 in USDJPY in G10. The focus on sticky supercore inflation and the subsequent pricing of fewer Fed rate cuts for 2024 is weighing on the emerging market FX basket.
    • After giving back the majority of gains following the earlier poll results, USDZAR trades back to session highs above 18.63.
    • USDMXN also a notable outperformer, rising close to 1% off the lows to briefly print a session high of 16.4556.
    • USDBRL holds the 5.00 handle support well and trades up to 5.0444 while USDCLP rises 0.60% to 947.00.