Commerzbank’s Thu Lan Nguyen notes that despite stronger-than-expected US inflation, retail sales and producer prices, the Dollar and EUR/USD have largely reverted to pre-data levels.
RaboResearch Global Economics & Markets notes that US CPI and PPI data, alongside shifting Fed expectations, are driving US Dollar and US Treasury market dynamics. The report highlights hotter-than-expected core CPI, a temporary spike and retracement in US Treasury yields, and the potential for PPI to confirm CPI trends. Fed speakers, including Goolsbee, Barkin and Bowman, underscore ongoing concern over US inflation.
The US Dollar (USD) trades lower against its major currency peers on Tuesday due to lower United States (US) Treasury Yields.