EUR/USD, USD/JPY flows - still waiting on $-influential CPI
No sign of movement in Iran, mkt otherwise still holding sight into US CPI
Latter has potential to move the mkt, especially with positioning still overall long dollar
Choppy back and forth continues for oil around the $90 area for Brent as the market still left waiting with no real change to the backdrop, Houthi attacks and no sign of a change of tune from Iran regarding nothing happening unless the US meets the conditions.
That has remained the only real distraction as the market drifts into the key US CPI release. For that we are on consensus in looking for a 0.1% overall and 0.2% ex food and energy. It’s a consequential number though so there is a lot of scope for market reaction. Indeed, even an as-expected report (especially on on the lower side before rounding) might tend to see the dollar disappointed given that the market is still broadly very long $, even after trimming last week.