USD flows: USD slightly lower after softer CPI

US CPI is on the weak side of consensus, which has pulled US yields a little lower and pushed equities a little higher with the USD falling back slightly as well. The April numbers clearly don’t show any impact from tariffs, so that is still to come in the coming months, and the data is consequently less significant than it might otherwise have been. Lower inflation data pulling US yields lower is normally a little USD negative, but with the USD appearing to carry a little risk premium against the EUR due to the tariff uncertainty, lower inflation numbers may not be particularly negative, and EUR/USD may still have some downside risks.