He dollar American puts aside two consecutive days of earnings after the US inflation data which marked a slowdown in the rise in prices.
The index quickly lost early gains and fell back into negative territory shortly after US inflation figures posted another weak reading in April.
In fact, headline CPI inflation rose an annualized 4.9% in April and core CPI rose 5.5% over the past twelve months. In monthly terms, both indicators rose 0.4%.
The index loses momentum as earlier gains evaporate after softer-than-expected US inflation data for April.
The index appears to be facing downward pressure in light of the recent indication that the Fed will likely pause its normalization process in the near future. Having said that, the future orientation of monetary policy will be determined by the behavior of the main fundamental indicators (employment and prices, mainly).
In favor of a doldrums on the part of the Fed seem to be the persistent disinflation -despite the fact that consumer prices remain well above the target-, the incipient cracks in the labor market, the loss of momentum of the economy and the growing uncertainty surrounding the US banking sector. FAgainst a basket of currencies, the dollar index fell 0.10% to 101.29.
Learn more – Follow the price of the blue, official, CCL and MEP dollar in Argentina
Source: Ambito
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