US dollar under pressure amid softer inflation - London Business News | Londonlovesbusiness.com
Briefly

The US Dollar is experiencing downward pressure following a lower-than-expected inflation reading of 2.3% in April, the lowest since February 2021. This easing of inflation may prompt the Federal Reserve to adopt a more dovish policy stance. Additionally, uncertainties surrounding the impact of US-China tariffs and upcoming economic data, particularly retail sales and producer prices, could further influence the dollar's outlook. Recent stabilization in longer-term yields, alongside reduced hawkish expectations for the Fed, adds complexity to market sentiment regarding the currency's future.
The recent inflation report, showing a decline to 2.3%, may shift the Federal Reserve towards a more dovish policy stance, impacting the US Dollar.
With the US-China tariff rollback agreement assessed by investors, lingering uncertainties could cloud the outlook for the dollar.
Longer-term US yields stabilized below 4.47%, indicating reduced expectations of a hawkish Federal Reserve.
Upcoming retail sales and producer price data are pivotal, as weaker figures may lead to dollar pressure while stronger findings could bolster it.
Read at London Business News | Londonlovesbusiness.com
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