The rebound for the Dollar has been especially muted still. But economists at MUFG Bank count on a robust US Consumer Price Index (CPI) document to set off a Dollar rally.
How the US fairness market reacts to inflation records will be key for the Dollar
“The DXY is very shut to the closing degree from third February and has barely superior at all since. The lack of follow-through for the USD in phase displays the resilience of US fairness markets and the response of the S&P five hundred to today’s inflation print will be essential as well. We would expect a more suitable than predicted CPI information nowadays would instantaneous that resilience to supply way extra honestly as the prices market strikes to charge an extra 25 bps charge hike past May.”
“We truly see a more advantageous CPI print as extra disruptive for threat and that may want to be the catalyst for a greater stated rally again for the Dollar than what we have viewed on account that the preliminary response on third February.”
