US CPI softens, prompting earlier Fed rate cut
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Daily Currency Update
The US dollar encountered setbacks against various currencies due to the release of US core inflation data, revealing its slowest pace in three years. This prompted earlier projections for rate cuts in the world's largest economy.In April, core CPI decelerated to an annualized rate of 3.6%, in line with market forecasts. This, coupled with stagnant retail sales data, suggests an increasing probability of conducive conditions for rate reductions.
Last month's US retail sales figures remained stagnant instead of the anticipated 0.4% gain projected by economists, further reinforcing the notion of a slowing economy.
Key Movers
Market observers continue in viewing the ECB as the likely frontrunner among the major global central banks to implement rate cuts, with June almost unanimously anticipated by traders. However, the Bank of England could promptly follow suit, as its policy decision on June 20 remains uncertain.Expected Ranges
- GBP/USD: 1.2645 - 1.2725 ▲
- GBP/EUR: 1.1625 - 1.1695 ▲
- GBP/AUD: 1.8885 - 1.8995 ▼
- EUR/USD: 1.0855 - 1.0915 ▲