USD: CPI needed to shake up FX market – ING

Source Fxstreet
Jul 10, 2024 11:40

Global currency volatility has continued to drop rapidly as markets await developments on eurozone and US politics, as well as on the data side. The proximity to Thursday’s pivotal CPI release in the US may also be behind this week’s cautious trading in FX, ING’s FX strategist Francesco Pesole notes.

US Dollar to remain flat ahead of Friday’s CPI report

“Today, Federal Reserve Chair Jerome Powell faces House policymakers for his second testimony, after yesterday’s Senate appearance had few repercussions on markets. Powell’s prepared remarks focused on two-way risks, reiterating the need for more data input to justify monetary easing. So, more of the same rhetoric from Powell, who’s happy with keeping markets relatively quiet.”

“The US Democratic Party revolt against President Joe Biden appears to have been fully sidelined by markets. Predict index of Biden’s probability of being the party's candidate in November has bounced back from 40% to 60% after recent signs that the internal push to replace him may indeed be insufficient.”

“We expect FX volatility to remain low today, a development that can favour an additional short-term recovery in high carry currencies like MXN and BRL, while keeping the pressure high on the funding yen. The dollar may remain broadly flat into tomorrow’s CPI.”

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Copper Long-term forecast: Will Copper Price Expected To Soar In 2023?The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
Author  Mitrade
The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
placeholder
Understanding the first crypto market crash of 2024 and what to expect nextThe 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
Author  FXStreet
The 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
placeholder
Natural Gas sinks to pivotal level as China’s demand slumpsNatural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
Author  FXStreet
Natural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
placeholder
Dogecoin Big Rally Ahead: Analyst Sees ‘Most Beautiful’ Chart PatternOnce again taking the stage in the crypto scene is the popular meme coin Dogecoin (DOGE). Renowned crypto analyst JD has lately revealed his very positive view of DOGE, which has excited traders and investors.
Author  NewsBTC
Once again taking the stage in the crypto scene is the popular meme coin Dogecoin (DOGE). Renowned crypto analyst JD has lately revealed his very positive view of DOGE, which has excited traders and investors.
placeholder
Ethereum ETF: Buy the rumor, sell the news?Spot ether ETFs, which will enable investors to buy the second most popular cryptocurrency just like stocks, are set to start trading in the U.S. next week.
Author  Investing.com
Spot ether ETFs, which will enable investors to buy the second most popular cryptocurrency just like stocks, are set to start trading in the U.S. next week.
goTop
quote