The Yen eased broadly on Wednesday as a slow increase in US Consumer Inflation report for April boosted stocks and raised investor appetite for risk. This fade CPI briefly caused traders to sell the Dollar, but analysts said it did not changed market views that the Federal Reserve's cycle of interest rate cuts was almost over.
US CPI rose by 0.2% in April, slightly less than the 0.3% forecast by market analysts. CPI rose 0.3% in March.
Sterling drop to a near three-month low against the Dollar after the Bank of England, in its quarterly inflation report, said British prices would shoot up this year, which many believe may delay interest rate cuts. If British inflation continues to heat up, this will have a negative impact on the broader economy while keeping the central bank wary of cutting rates, which often promotes growth.
Disclaimer: All information on this web site is subject to change. The use of this web site constitutes acceptance
of our user agreement. All publisher financial articles at
FXtree.com are those of the individual authors and do not represent trading recommendations
of FXtree.com or its staff.
