Analysts at TD Securities point out that the US CPI for the month of March was a touch stronger on the headline and weaker on the core, mostly thanks to apparel.
Key Quotes
“But this outlier was not enough to change expectations for underlying inflation to move mostly sideways for the next several months. Today’s report should support the Fed’s “patient” stance and our expectations for no additional rate hikes.”
“FX: The reaction has been conflicted by the ECB press conference that is currently ongoing. Nonetheless, with a lot of bad news already in the EUR price, we suspect that the combination of a soft US CPI print and dovish Fed minutes will lead to a modest extension lower in the USD.”
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