Flat US dollar calm before the Core CPI storm

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ByScott Andrews

US index 10 06 2021

Overnight early in the US open the DXY broke briefly below 90.00 which did cause some movement higher against the major currency pairs, this was short lived and price pushed back over 90.00 with no significant news being released yesterday for the US. Price stabilised later into the session as risk sentiment ended the US trading session quite muted. Currently markets are quite flat in the lead up to the major news events tonight. 20:30 GMT+8 there is Core CPI month on month to be released, initial jobless claims also, all of this has some very high chance of driving the US dollar higher. Looking into the situation with prices of goods in the US the overwhelming theme is higher prices and this being passed onto the consumer so be prepared for some initial volatility but I’ll be looking for a daily close above 90.50 resistance and to see if that trend can be held into Friday’s US session.