TOKYO/LONDON (Reuters) – The dollar was little moved ahead of key U.S. inflation data, while the yen still traded around multi-decade lows, keeping traders on alert for any signs of intervention by Japanese authorities.
Today, the market’s attention is mainly focused on the reading of US consumer prices for the month of March, scheduled for 2.30 pm Italian time, which operators are eagerly awaiting for indications on the Federal Reserve’s economic policy prospects.
Ahead of the data, U.S. interest rate futures put the odds of a first cut in June at around 50%, according to CME Group’s FedWatch tool. The chance of waiting rose to 46%.
According to analysts, a solid inflation reading could lead markets to rule out a cut in June, which could push the dollar higher.
At 10.24am, the US dollar index, which measures the greenback against six other currencies, recorded a slight decline of 0.02% to 104.128.
No new warnings have been issued in Japan but the yen is still hovering around 34-year lows against the dollar ahead of the US data.
However, Bank of Japan Governor Kazuo Ueda dismissed market speculation that the yen’s sharp decline could force the central bank to raise interest rates.
The Japanese currency stands at 151.84 per dollar.
The euro is trading stable at $1.0852, after hitting a three-week high against the dollar in the latest session, as tomorrow’s European Central Bank meeting approaches.
(Translated by Camilla Borri, editing Antonella Cinelli)
