Inflation

The market is concerned that tomorrow's US inflation data will show a sharper decline, affecting the US dollar exchange rate.

The Eurozone's inflation rate has significantly decreased, while the core inflation rate has hit a new record high. This situation has trapped EUR/USD ahead of next week's ECB meeting.

Today's German inflation data has raised market expectations for tomorrow's release of Eurozone inflation data while supporting expectations for ECB interest rates and the euro exchange rate.

The current position of the US dollar index indicates market uncertainty that could develop into a short-term sideways movement.

Today's Eurozone inflation data showed a continued downward trend despite the pace exceeding expectations.

The PCE price index indicates the end of the US inflation downtrend that has been going on for the past few months.

The latest US inflation data supported the US dollar exchange rate but did not trigger a significant rally or change the Fed's interest rate expectations.

US inflation data was negative for the first time since May 2020, causing the US dollar to lose against other major currencies.

Although market participants are still pessimistic about the outlook for the US dollar this year, the majority prefer to wait and see ahead of the release of US inflation data tomorrow.

The momentum of the Australian dollar's rally is waning, but the release of Australian retail and inflation data this morning is propping up the AUD/USD position.