 The financial markets' initial reactions to stronger than expected US CPI readings are relatively subdued. While there was an immediate response with Dollar and yields rising, and stock futures dipping, these movements lacked significant follow-through. The exception in the currency markets was USD/JPY, which broke through last week's high. However, this move is attributed to a combination of Dollar's strength and Yen's ongoing weakness. The restrained market response suggests that traders and investors may require more time to reassess their views on Fed's path toward policy loosening and adjust their market positions accordingly. As for the week, Euro is currently leading as the strongest currency, followed by British Pound and Dollar. However, the greenback holds potential to surpass others and take the top position. Conversely, Japanese Yen remains the weakest performer, with Australian Dollar and New Zealand Dollar also trailing. Swiss Franc is showing signs of weakness against European majors today, indicating a possible shift down in its relative market position... |
