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Yu Xin Bank: CPI will be a key test for the US dollar
Data from Jinshi on October 10th: Analysts at Yu Xin Bank stated in a report that following last Friday’s better-than-expected non-farm data, the US CPI data to be released tonight may become another key test for the foreign exchange market, especially for the US dollar. The persistence of prices may lead investors to consider reducing their expectations for future interest rate cuts by the Fed, thus supporting the US dollar. If this happens, the EUR/USD may fall below 1.09, and the USD/JPY may break through 150. A overall decline in CPI may cause a slight drop in the US dollar, but it is unlikely to be enough to push the EUR/USD above 1.10.