Dollar Fluctuates, Euro Holds Steady After CPI Data
The Bloomberg Dollar Spot Index swung between gains and losses amid muted flows as the market is in a holding mode ahead of President Donald Trump’s announcement of his reciprocal tariff plan on Wednesday.
EUR/USD little changed at 1.0817; euro-area inflation eased further toward the ECB’s 2% target as officials weigh whether or not to continue lowering interest rates this month.
Australia’s dollar pares a 0.4% advance to stand at 0.6256; the Reserve Bank of Australia left rates unchanged but reiterated that returning inflation to target was its highest priority.
Aussie rises after Governor Bullock said that the board did not explicitly discuss a rate cut, while swaps traders held May rate-cut bets to about 80%.
USD/JPY falls as much as 0.3% to 149.51; Japan’s large manufacturers remained relatively upbeat about business conditions.
GBP/USD climbs 0.1% to 1.2925; BOE’s Greene said that rising inflation expectations are a concern and there’s risk for second-round effects.
The British Retail Consortium said that food prices climbed 2.4% in the year to March, faster than the 2.1% increase previously.
Source : Bloomberg
