USDJPY Holds Strong — CPI Data Ahead

TradingPuzzles

The US dollar strengthened across multiple currency pairs overnight after a decline in PPI data.

Given that the CPI data came in lower than expected, there is a chance that today’s CPI numbers could also be a downside surprise.

This decline in inflation data is further increasing the chances that the Fed will cut rates at its September meeting.

This could help the US dollar show some strength, but there is still the risk of some major speculation.

CPI YoY expected at 2.9% (vs. 2.7% previous)
Core CPI (ex Food & Energy) YoY expected to stay at 3.1%

Key Targets: 148.80; 149.50 and 150.70

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