DXY FUTURES SURGE ABOVE 105 MARK AS US INFLATION STAYS STUBBORNLY HIGH; US PPI EYED FOR FURTHER CUES

Published on Apr 11, 2024 12:17

The dollar index futures rallied to a 5 month high above 105 mark following hotter than expected US inflation data that further delays possibility of a Federal rate cut. Data from US yesterday showed that headline inflation increased to 3.5% on year in March, up from 3.2% in February and beating the 3.4% expected. This was also this highest level since October last year. Core CPI measurement, excluding volatile food and energy costs reflected February`s increase with an annual rise of 3.8% in March. The dollar index futures that measures the greenback against a basket of currencies climbed 1% and hit a high of 105.09 in immediate reaction to the data and is currently quoting at 105.03, almost unchanged on the day. US benchmark treasury yields also spiked to 4.55% that could keep the greenback at elevated levels. Investors now look ahead to Thursday�s US producer price index report and ECB monetary policy for further insights on currency movements. Among the basket currencies, EURUSD and GBPUSD edged below the psychological levels and are quoting at $1.0765 and $1.2544 respectively.