In Asia, S&P500 futures have surged, indicating an increase in the market participants' risk appetite. Market sentiment is optimistic as the Federal Reserve's interest rate decision is likely to result in a neutral policy stance.
The US Dollar Index (DXY) has shown a slight correction around 103.60 after a decent rally. The USD Index is expected to perform sideways as the release of the US CPI will offer further guidance. US Treasury yields are choppy ahead of the inflation data, with 10-year US Treasury bond yields climbing above 3.76%.
Preliminary reports indicate that headline inflation is softening to 4.2R% compared to the previous release of 4.9% on an annualized basis. Lower oil prices have slowed down the overall inflation rate. However, core CPI, which excludes the impact of oil and food prices, is expected to marginally increase to 5.6% from the previous release of 5.5%.
The scrutiny of the preliminary US inflation report shows that households' demand for durables and services is consistently rising, putting pressure on Fed policymakers for hawkish guidance.
Meanwhile, the Bank of Japan's (BoJ) interest rate decision will keep the Japanese Yen in the spotlight. BoJ Governor Kazuo U
The US Dollar Index (DXY) has shown a slight correction around 103.60 after a decent rally. The USD Index is expected to perform sideways as the release of the US CPI will offer further guidance. US Treasury yields are choppy ahead of the inflation data, with 10-year US Treasury bond yields climbing above 3.76%.
Preliminary reports indicate that headline inflation is softening to 4.2R% compared to the previous release of 4.9% on an annualized basis. Lower oil prices have slowed down the overall inflation rate. However, core CPI, which excludes the impact of oil and food prices, is expected to marginally increase to 5.6% from the previous release of 5.5%.
The scrutiny of the preliminary US inflation report shows that households' demand for durables and services is consistently rising, putting pressure on Fed policymakers for hawkish guidance.
Meanwhile, the Bank of Japan's (BoJ) interest rate decision will keep the Japanese Yen in the spotlight. BoJ Governor Kazuo U
