Dollar Struggles for Direction as Softer CPI Fails to Trigger Major Moves
| Action Insight Mid-Day Report 3-12-25 |
Dollar Struggles for Direction as Softer CPI Fails to Trigger Major Moves |
Dollar is struggling to find a definitive direction in early US session, even after the softer-than-expected Consumer Price Index report offered fresh evidence of easing inflation pressures. Annual core CPI now sits at its lowest level since 2021, a development that should bring some relief to both the Fed and markets. However, the data release has not sparked a substantial move in the greenback, as lingering tariff concerns keep traders in a wait-and-see mode. The most immediate market reactions have been more evident in equities and bonds. US stock futures are rebounding on the prospect of Fed easing sooner. Funds are flowing out of bonds, pushing the benchmark 10-year Treasury yield higher. Yet overall market caution remains elevated, with tariffs casting a shadow over trade and growth prospects. For now, Canadian Dollar is currently in the lead for the day, although BoC’s upcoming rate decision could quickly change that dynamic. Dollar is the second-best performer on the day, followed by the British pound. At the other end of the spectrum, Japanese Yen is faring the worst, trailed by Euro, which is digesting recent strong gains, and then Australian Dollar. New Zealand Dollar and Swiss Franc are hovering in the middle of the pack.... |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.0849; (P) 1.0898; (R1) 1.0968; More... While EUR/USD continues to lose momentum as seen in 4H MACD, there is no clear sign that a correction is imminent yet. Further rise is in favor as long as 1.0804 support holds. Sustained trading above 161.8% projection of 1.0176 to 1.0531 from 1.0358 at 1.0932 will target 261.8% projection at 1.1287, which is slightly above 1.1274 key resistance. Nevertheless, firm break of 1.0804 should now indicate short term topping, and bring deeper pullback. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:50 | JPY | PPI Y/Y Feb | 4.00% | 4.00% | 4.20% | | 23:50 | JPY | BSI Large Manufacturing Q1 | -2.4 | -2.4 | 6.3 | | 12:30 | USD | CPI M/M Feb | 0.20% | 0.30% | 0.50% | | 12:30 | USD | CPI Y/Y Feb | 2.80% | 2.90% | 3.00% | | 12:30 | USD | CPI Core M/M Feb | 0.20% | 0.30% | 0.40% | | 12:30 | USD | CPI Core Y/Y Feb | 3.10% | 3.20% | 3.30% | | 13:45 | CAD | BoC Interest Rate Decision | 2.75% | 3.00% | | 14:30 | CAD | BoC Press Conference | | 14:30 | USD | Crude Oil Inventories | 2.1M | 3.6M |
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