The USD continues to present a excessive correlation to US data surprises, so the Consumer Price Index (CPI) report ought to signal the direction. Economists at TD Securities will likely be short-term centered on whether or not this quantity shakes resilient danger sentiment, as that can even assist inform near-term USD worth motion.
EUR/USD to stay in its broad 1.0150/1.0290 vary
“A stronger CPI print, particularly in the details, could alter pricing (in a hawkish direction) beyond September, while a downside surprise will likely shake pricing for next month.”
“We are inclined to see EUR/USD remain in its broad 1.0150/1.0290 range though a break of that is more likely on the downside than the upside.”
“USD/JPY should trade closer to 136 based on spreads, and we think a positive surprise should get it there.”
“We are focused on the impact on risk sentiment as that should also inform near-term pricing for FX markets in what otherwise is thinner liquidity at this time of year.”
See – US CPI Preview: Forecasts from 9 main banks, hovering inflation to ease off in July