
The dollar index (DXY00) today is up +0.04%. The weakness in stocks today has boosted some liquidity demand for the dollar. However, gains in the dollar are limited after US January consumer prices rose less than expected, boosting speculation that the Fed will be able to resume cutting interest rates.
US Jan CPI rose +2.4% y/y, weaker than expectations of +2.5% y/y and the smallest pace of increase in 7 months. Jan core CPI rose +2.5% y/y, right on expectations and the smallest pace of increase in 4.75 years.