US CPI: Any disappointment would lead to USD rebound – OCBC

Markets are keeping a close watch on the US CPI print on Wednesday. Economists at OCBC Bank discuss how the purport could influence the greenback.

USD can continue to slide further on  a low 3% print for headline or under 5% print for core

Latest set of survey from Bloomberg pointed to expectations of 3.1% print for headline CPI (down from 4% YoY in May) and a 5% print for core (down from 5.3%). 

Any disappointment (i.e. actual CPI coming in higher than expectations) would lead to USD rebound. But if we do get a low-3% print for headline or even under 5% print for core, then USD can continue to slide further.

See – US CPI Banks Preview: Inflation to step meaningfully lower in June