The US dollar picked up some tailwinds last night as expectations of an increase in today’s CPI figures may lead to a hike in US interest rates. Data from Citigroup suggests US price growth readings have increasingly outperformed relative to forecasts since the beginning of the year, opening the door for an upside surprise. A higher reading may inspire speculation that the time gap between October’s end of Fed QE and the first interest rate hike will narrow and drive the US dollar higher. Euro fell to its 2014 low of 1.3477 where it has found temporary support. The next support levels are 1.3462 (Nov 2013 low) and 1.3400.
|TueJul 22||8:30am||Core CPI m/m||0.20%||0.30%|
|10:00am||Existing Home Sales||4.98M||4.89M|
|Richmond Manufacturing Index||5||3|