The USD is soft as yesterday’s data warns that the economic recovery is fragile even as inflationary pressures build. On the back of this high yielding currencies have done well on a positive environment for carry; while European currencies have softened further ‐see chart. Today there are two Fed hawks scheduled, Lacker at 8:30am EST and Bullard at 1:05pm EST; but the highlight will be U.S. PCE, the Fed’s favoured inflation gauge.
Read the full report: FX Daily