Published: 2024-11-13T13:40:40.000Z
USD, EUR, JPY flows: USD slips back after CPI
Senior FX Strategist
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US yields and the USD both fall despite CPI being bang in line with consensus. Scope for more JPY gains
US CPI data has come in bang in line with consensus, but the USD has fallen back in response, suggesting that the market was pricing in stronger data. Short term positioning is certainly long USD, and the decline in US yields in response to the data also shows that it has been short bonds. The decline in US yields suggests scope for USD/JPY to slip back to 154, but spreads are still suggesting scope for EUR/USD declines, so EUR/JPY ought to be biased lower as well.
