The USD is taking a bit of a breather as, on a trade‐weighted basis, the greenback is away from yesterday’s highs, thanks at least in part to Fed St Louis President (FOMC voter) James Bullard’s comments. Mr. Bullard noted that repressed inflation is weighing somewhat against the view for a Fed taper, and that the Fed needs more data regarding H2 economic performance before deciding to shift the monetary policy stance. The PPI data yesterday did not help matters as headline and core PPI weakened more significantly than expected, lending credence to this concern.
Read the full report: FX Daily
Scotiabank