US CPI and Core CPI
This weeks fundamental driver for the USD would be from the US CPI and Core CPI.
Last week there was a lot of volatility on the USD due to the FOMC Conference meeting and Economic projections. The market is now a little more cautious about buying the USD as the Fed have made it clear they would be patient and they would depend on data outcomes, majorly from Jobs sector, Inflation sector and Wage growth,as regards to the rate hikes from now on. So the key to keeping the USD rally going will be positive data from the US. If we get a positive deviation we could get a nice positive move higher on the USD however if we get a negative deviation we will likely see the USD fall lower again.
Traders are now using US data points to make their decisions on when the Fed are going to hike rates and how fast it’s going to be. So we want to keep a very close eye on both the CPI and Core CPI.