 The forex markets are ending the week in a sluggish and indecisive mood, despite a flurry of notable economic data releases. The highlight was the hotter-than-expected US core PCE inflation, which firmed expectations that Fed will hold rates steady in May, with market pricing now around 90% chance. However, expectations for a June rate cut remain relatively resilient at around 65%. Yet, Dollar showed little appetite to capitalize on the data. It briefly lost ground against Euro and Sterling earlier in the session but quickly settled back into tight ranges. Similarly, stronger-than-expected Canadian GDP data failed to meaningfully support Loonie, which remains on the softer side for the day. Sterling, too, couldn’t hold onto gains despite upbeat retail sales figures, suggesting broader market hesitancy. The overall restrained price action suggests that traders are simply not ready to make big moves ahead of next week's "reciprocal tariff" announcement from the US.... |
