The post US Dollar pulls back ahead of Fed with disinflationary CPI release setting the tone for a soft dollar during summer appeared on BitcoinEthereumNews.com.

The US Dollar trades weaker across the board after disinflationary CPI release.  Traders are sending the Greenback lower, ahead of the upcoming Fed meeting.  The US Dollar index falls below 105.00 and is even heading to the lower 104.00-region.  The US Dollar (USD) sinks lower in the US Consumer Price Index (CPI) aftermath. The move comes with all inflationary elements coming in at the low end of the expectation or even undershooting it. Main element is the monthly headline inflation which fell to 0%, where 0.1% was expected and coming from 0.3%. On the economic front, all eyes are now on the US Federal Reserve (Fed) which is set to issue its rate decision. The Federal Open Market Committee (FOMC) will need to assess this CPI report in order to determine how they will see their dot plot forecast. That dot plot chart, or Philips curve, will be released as well later this Wednesday.  Daily digest market movers: All eyes on the dot plot now At 11:00 GMT, the Mortgage Bankers Association (MBA) has released the Mortgage Applications number for the week ending on June 7. The previous week, a notable decline of 5.2% was printed, with now an uprise of 15.6%. At 12:30 GMT, the US Bureau of Labor Statistics has released the US Consumer Price Index for May: Monthly core inflation came in at 0.2%, coming from 0.3%. Monthly headline inflation went from 0.3% to 0.0%. Yearly core inflation went from 3.6% to 3.4%. Yearly headline inflation came in a touch softer at 3.3% against 3.4%. All data points in the CPI report were either at the lowest estimate or even below it, making it a very soft and disinflationary report.  Markets will digest the CPI release until 18:00 GMT, when the US Federal Open Market Committee (FOMC) will…

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Filed under: News - @ June 12, 2024 6:20 pm