US CPI data was a little better than expected, and it's a little too late to say don't get carried away:
- Forexlive Americas FX News Summary May 15: Greener grass to the fore as CPI/spending tames
ING comments on data and market movements:
- US Treasury yields fell after what was objectively just below inflation expectations in April.
- Inflation numbers remain inconsistent with the Fed's target, and core inflation only fell because April's reading last year was too high. May offers the opportunity to break through another high base, but unless the monthly inflation rate falls significantly, inflation will stall, or even begin to drift upward again. So don't get too carried away
- Expectations of interest rate cuts have already changed by a fair amount. The September rate cut has now been fully priced in. The second sale is also fully priced by December
The USD/JPY pair continues its losses, and has not retreated yet:
This article was written by Eamonn Sheridan at www.forexlive.com.
