Daily digest market movers: DXY absorbs hit on CPI reading, eyes turn to FOMC

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  • US Bureau of Labor Statistics (BLS) reports a decline in US CPI to 3.3% YoY in May, down from 3.4% in April and slightly below market expectation of 3.4%.
  • Annual core CPI rose 3.4%, marking a decrease from April's 3.6% and falling below analysts' estimate of 3.5%.
  • Markets expect a hawkish hold from the Fed, maintaining the stance that was portrayed before Wednesday's inflation data was released.
  • Dot plot and Chair Powell’s press conference will potentially swing the US Dollar in a significant way. A shift toward a dovish stance from Powell could cause downward pressure on Greenback.
  • Updated forecasts will also be key as they will give additional clues to investors on when the Fed will start cutting. As for now, the easing cycle odds are on a start in November.


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