Rising CPI Inflation To Keep FX Focus On Fast-Responders, Says ING
NDTV
The Ukraine war has exacerbated prices globally; with inflation data due for many countries, ING says, FX focus will be on the fast-responders.
The Russia-Ukraine war has exacerbated rising price pressures globally; with inflation data due for many countries this week, ING says, the currency markets' focus will be on the fast-responders.
"We will see March CPI (inflation) prints for quite a few economies this week -including the US. New cycle highs are anticipated. Expect these readings to favour the currencies backed by central banks ready to adjust rates fast, including the Federal Reserve," said Chris Turner, Global Head of Markets at ING.
"The dollar starts the week on its cyclical highs. The move remains very much driven by surging inflation and the fact that the Fed looks prepared to deal with it through 'expeditious' normalisation of monetary policy," he added.
Data released on Friday by the US Commodity Futures Trading Commission showed bets favouring the greenback fell in the latest week, partly reflecting investors' scepticism if the dollar's rise to near two-year highs last week already reflected the aggressive Fed tightening path.
