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Barchart
Barchart
Rich Asplund

Dollar Edges Lower on Fed-Friendly US CPI Report

The dollar index (DXY00) today is down by -0.38%.  The dollar today is mildly lower after the US Apr CPI was weaker-than-expected and showed the smallest increase in 4 years, a dovish factor for Fed policy.  Also, weaker T-note yields today have weakened the dollar’s interest rate differentials.  In addition, strength in stocks has curbed liquidity demand for the dollar.

US Apr CPI rose +2.3% y/y, slightly weaker than expectations of +2.4% y/y and the smallest year-on-year increase in 4 years.  Apr CPI ex-food and energy rose +2.8% y/y, unchanged from March and right on expectations. 

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