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YUANSHIN BANK: CPI will be a key test for the US dollar
Jinse Finance reported that analysts at Yuexin Bank said in a report that following last Friday's stronger-than-expected non-farm payrolls data, the US CPI data to be released tonight could be another key test for the foreign exchange market, especially for the US dollar. The persistence of prices may make investors consider reducing their expectations for future interest rate cuts by the Federal Reserve, thereby supporting the US dollar. If this happens, EUR/USD may fall below 1.09, and USD/JPY may break through 150. Overall CPI decline may cause a slight decline in the US dollar, but it is not likely to be enough to push EUR/USD above 1.10.