The US inflation data last week wasn't enough to propel the greenback into new highs as the figures came out lower than expected. The US Treasury yields are now back to pre-US CPI levels and the market continues to price roughly two rate cuts by year-end. The Fed is fully expected to hold rates steady at the upcoming meeting.
We can see on the 1 hour chart below that the market has almost fully erased the post-US CPI rally and we are even having a break of the upward trendline that's been defining the correction.
For now, this might all be noise given the lack of major news or data today. Nevertheless, we need stronger reasons for the market to reprice expectations on the more hawkish side and challenge the bearish trend.
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