-
U.S. Dollar Post-CPI: EUR/USD, GBP/USD, USD/JPY, XAU/USD (Gold)
The U.S. Dollar is continuing what’s been a very strong start to 2024 trade, getting another extension in the move after this morning’s CPI report. Both headline and core CPI printed above expectations, with core CPI remaining at 3.9%. This would make the case for starting rate cuts even more challenging when meshed with the earlier-month NFP report, which showed continued strength in labor market data. For a Fed that’s been telling markets that rate cuts are on the way, even during the hiking cycle, this complicates matters as core inflation remains far away from the Fed’s 2% target, depicted below with a ... (full story)