USD: April CPI Tilts The Odds In Favor Of 2 More Fed Hikes This Year Rather Than 3 – CIBC


US Core inflation came out at 2.1%, below expectations. What does it mean for the greenback going forward?

Here is their view, courtesy of eFXdata:

CIBC Research discusses its reaction to today’s US CPI report for the month of April.

“Slowly but surely, inflation is heating up. US consumer prices advanced 0.2% in April, leaving the annual rate accelerating a tick to 2.5%. That said, after stripping out the boost from both food and energy, prices were only up 0.1% on the back of soft readings on auto prices.

This does further tilt the odds in favour of two more rate hikes this year rather than the three some Fed officials have been suggesting.

The slightly below consensus readings should be bullish for fixed income and bearish for the dollar,” CIBC argues.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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