 Dollar continues its struggle to find direction, and stay in familiar range against most major currencies except against Swiss Franc. Markets shift their focus to the upcoming release of April US PCE data for guidance. Currently Fed fund futures are indicating a 50/50 chance of a rate cut by September. Recent comments from Fed officials hinted at the unlikelihood of further rate hikes. However, Fed's outlook and market sentiment could shift dramatically if today's data suggests re-acceleration of inflation. But absent significant surprises, attention is likely to turn to next week's employment figures. Euro is currently trading as as this week's weakest performer amidst anticipations for Eurozone CPI flash report. Forecasts suggest slight increase in headline CPI to 2.5% a steady core CPI at 2.7%. With ECB nearly set to introduce the first rate cut of this cycle next week, a subsequent rate cut in July seems improbable, as the central bank aims to manage market expectations carefully. Traders are poised to look beyond today's figures, focusing on next week's rate decision and forthcoming economic projections.... |
