Dollar Slips and Markets Rip Higher As Soft US Inflation Data Bolsters Rate Cut Bets
The US dollar is trading with a modestly weaker bias after fresh evidence that price pressures are moderating in the world’s largest economy reinforced expectations that the Federal Reserve could begin cutting interest rates as early as October. Underlying inflation eased by more than expected last month. Data released by the Bureau of Labor Statistics this morning showed core consumer prices, which exclude food and energy, climbing just 0.1 percent in May from a month earlier, slowing from the 0.2-percent pace recorded in April, and undershooting market expectations for a steady print. Core prices rose 2.8 percent on a year-over-year...