US dollar chops after CPI report | Forexlive

US Treasury yields are modestly lower after the CPI report and the dollar is slightly softer. Two-year yield are down to 5.01% from 5.04% ahead of the data while the dollar is generally softer, including against the euro. As you can see though, it’s been choppy and the moves are small.

Core inflation at +0.3% was hotter than +0.2% m/m expected but the unrounded number of +0.278% was closer and the y/y reading was in-line. There was some angst creeping into the market on rising oil prices and that’s come out after the data, with the numbers only fractionally higher than anticipated.

Look for bonds to remain in the drivers’ seat from there and stocks to have a say as well. S&P 500 futures are up 1 point ahead of the open.