All eyes at present are on the US March CPI studying, anticipated to hit a brand new cycle high at 8.4% year-on-year. A quantity in that neighborhood ought to preserve aggressive Fed tightening expectations and preserve the greenback supported throughout the board, economists at ING report.
High CPI to support aggressive Fed
“Consensus expects at present’s US March CPI launch to push up to a brand new cycle high of 8.4% year-on-year and core rising to 6.6% YoY. Though it appears excessive, this sort of quantity ought to support market expectations that the Fed will take the coverage price in the direction of the two.50% space by year-end.”
“DXY is now nudging above the 100 space and we see no purpose why it can’t proceed to push on to 100.80/101.00. Equally, USD/JPY has damaged away from the 125.00 space and positive factors may speed up on a technical break of 125.85 – the high in 2015.”