18 Jun 2014
USD stronger following recent data - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, observes the better performance of the USD post-CPI figures.
Key Quotes
"The US dollar has strengthened modestly following the release yesterday of the stronger than expected US CPI report for May. The report has helped to lift US yields with the two-year US Treasury bond yield rising to its highest level since early September of last year."
"The report revealed further evidence that inflation in the US has bottomed and is rising back towards the Fed’s target. Inflation has been accelerating early in 2014 with the annual rate of headline and core inflation rising to 2.1% and 2.0% respectively in May."
"The monthly percentage change for core inflation was also the largest increase since October 2009. The pick up in inflation pressures appears relatively broad-based and especially evident in services. The services CPI has increased by an annualized rate of 3.7% so far in 2014."
Key Quotes
"The US dollar has strengthened modestly following the release yesterday of the stronger than expected US CPI report for May. The report has helped to lift US yields with the two-year US Treasury bond yield rising to its highest level since early September of last year."
"The report revealed further evidence that inflation in the US has bottomed and is rising back towards the Fed’s target. Inflation has been accelerating early in 2014 with the annual rate of headline and core inflation rising to 2.1% and 2.0% respectively in May."
"The monthly percentage change for core inflation was also the largest increase since October 2009. The pick up in inflation pressures appears relatively broad-based and especially evident in services. The services CPI has increased by an annualized rate of 3.7% so far in 2014."