USD Slips on CPI Miss; Central Banks Drive FX Volatility

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Forex Market 

USD Softens After Benign CPI; GBP & EUR Volatile on Central Bank Decisions
The USD weakened following softer-than-expected U.S. CPI, before paring losses later in the session. AUD/USD traded within a 0.65925–0.6646 range, settling near 0.6614 as demand emerged ahead of 0.6550. EUR and GBP saw heightened volatility around central bank events, while USD/JPY dipped post-CPI before stabilising near mid-range.

General Market

Wall Street
  • Nasdaq +1.3% (late +1.8%)
  • S&P 500 +0.8% (late +1.1%)
  • Dow Jones +0.2% (late +0.5%)
  • VIX -4.8% to 16.77
Asia-Pacific
  • Nikkei -1.0%
  • Hang Seng -0.2%
  • Shenzhen -0.6%
Europe
  • FTSE +0.6%
  • DAX +1.0%
  • CAC +0.8%

 

Headlines to Watch

  • Bank of Japan: Markets price a ~90% chance of a 25bp hike to 0.75%, with focus on guidance around neutral policy.
  • UK: GBP strengthened after a narrow 5–4 BoE vote cut, as markets reduced expectations for further easing.
  • Eurozone: ECB held rates steady, revised medium-term growth forecasts higher, reaffirmed data-dependent stance.
  • United States: Softer CPI reinforced risk appetite, though weak Philly Fed data highlights uneven economic momentum.

Mid-market rates

Currency PairMid-market Rate
AUD/USD0.6614
AUD/NZD1.1452
AUD/JPY102.91
AUD/CNY4.6567
AUD/EUR0.5640
AUD/GBP0.4941
AUD/HKD5.1463

 

 

 

 

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