Currency markets were mostly quiet overnight as traders awaited a slew of economic releases and central bank activities scheduled for today.
The dollar could see some general weakness this morning after a key measure of inflation rose less than forecast in March. Core consumer price index, which excludes food and energy, only rose 0.1% from a year earlier, less than the 0.2% forecast by economists. The year over year number also came in lower at 2.0%.
The lack of price pressures will add to the Fed’s argument that interest rates should remain unchanged in the medium term. We will get a better look at the Fed’s thinking this afternoon as the central bank will release the minutes from their last meeting. Currently, futures show a 56% chance that the Fed will actually need to cut rates by the end of the year.
What to Watch Today…
- Fed Minutes at 2 p.m.
The economic docket surprised to the upside as the U.K. economy fared better than expected. Growth in the three months to February held at 0.3%, beating expectations of a 0.2% increase.