The dollar index (DXY00) is down by 0.26% today, following a smaller-than-expected 3.3% year-over-year increase in the U.S. March Consumer Price Index (CPI), which fell short of the anticipated 3.4%. Additionally, the University of Michigan’s April consumer sentiment index plummeted to a record low of 47.6, significantly lower than the expected 51.5. Market expectations suggest a 2% chance of a 25 basis point rate hike during the April 28-29 FOMC meeting.
In other economic data, U.S. factory orders for February remained unchanged, outperforming expectations of a 0.2% decline. Japan’s March Producer Price Index (PPI) rose by 0.8% month-over-month, surpassing projections of 0.7%. Markets are pricing in a 55% chance of a 25 basis point Bank of Japan rate hike at their upcoming meeting.
With a 31% chance of a European Central Bank rate hike on April 30, the euro has climbed to a five-week high against the dollar, driven by reduced demand for safe-haven assets. Simultaneously, gold and silver prices are slipping as higher global bond yields and a stronger stock market diminish their appeal.
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