US inflation data released on Tuesday showed a November Consumer Price Index rise of 0.1%, below the 0.3% market consensus. According to analysts at TD Securities, another moderation in monthly core CPI helps reaffirm that the USD top is here.
“This figure risks making the next Fed meeting moot as claims of a somewhat higher terminal rate become harder to assess. Risking the ECB ringing in and acting more aggressively.” than the Fed this week, it’s not hard for a USD reversal to happen.”
“In the short term, we believe that USDJPY will remain strong. and risks a more significant breakout of the 200-day moving average, especially if the Tankan survey shows more price pass-through (producer prices are already at multi-decade highs). Strategically, we think the divergence theme will dominate the yen (from a bullish point of view) as inflation peaks elsewhere (while still climbing in Japan) and global central banks cut or stop tightening. monetary policy (while the BoJ changes its yield curve).”
“For el EURUSD, 1.0620 should be the key short-term resistance/pivot, but the Euro was one of the first to lead the underperformance of the USD, so the risk here is that the move is tactically ripe. We think this could be more likely in some crosses like the JPY.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
