US dollar down across the board
Where is the inflation?
The US economy is growing, a tax cut is landing and the jobs market is super-tight. Yet sustaining any kind of inflation is proving to be a tall task.
Today's US April CPI report missed on a few fronts and suggests the Fed can wait before hiking (although June is probably a done deal).
USD/JPY has dropped to 109.30 from 109.60 and EUR/USD has jumped to 1.1917 from 1.1880. Gold is also taking advantage of the US dollar weakness in a pop to 1321 from 1318.
The good news for USD/JPY is that the stock market is likely to cheer this news. Futures are narrowly higher at the moment but fewer Fed hikes is great news for much of the market and it's already working with some near term momentum after a 26 point rise in the S&P 500 yesterday.
