Last week brought the latest CPI numbers for the US dollar. The 2.3% reading indicated that inflation moved one step closer to the 2% target. Naturally, this number also supports the desire for the Fed’s monetary relaxation through rate cuts. Alongside the pause of China’s tariffs, the result was a nearly 3% surge in the S&P 500, which has staged a V-shaped recovery, moving to a striking distance near the all-time highs.
The same cannot be said for the US dollar, which, although losing nearly 10% peak-to-trough in 2025, has only recovered about 3% of that, weighted by the Moody’s US credit rating downgrade. The Australian dollar, an important commodity currency, has fared better but hit multiple resistance levels last week and, despite good employment numbers, has started to decline. Australian dollar bearish trend continuation should be in focus over the next few weeks, particularly with the anticipated rate cut on Tuesday.
Other notable news in the week ahead will include the latest Canadian and British CPI, German PMI, and Canadian retail sales.
Key News:
- Tuesday: AUD – Interest Rate Decision, CAD – CPI
- Wednesday: GBP – CPI
- Thursday: EUR – French PMI, German PMI, GBP – PMI, USD – PMI, Unemployment
- Friday: GBP – Retail Sales, CAD – …