“The notion of potentially resilient US inflation data is now fully understood,” analysts at ING said in a note. “Investors feel comfortable with three 25bp cuts priced into December as there is currently insufficient data evidence to be more dovish. Similarly, an interest rate cut before June seems unlikely. All of this is translating into a resilient dollar.”
The Euro edged higher ahead of the eurozone CPI
In Europe, EUR/USD traded 0.1% higher at 1.0813, ahead of the release of eurozone CPI figures for February, which are expected to show another reflation in the region .
Data released on Thursday showed consumer prices fell slower than expected in France but faster than expected in Germany. Economists are expecting annual growth of 2.5% in February, down from 2.8% in January.
ING added: “A deviation from expectations could cause short-term fluctuations in eurozone and eurozone rates, but would not really have a major impact on the story told by Christine Lagarde and the Council The governor will repeat it next week.”
