MarketPR
The US Dollar Index is holding firm, with analysts at MUFG Bank attributing the greenback's staying power to a hotter-than-expected Consumer Price Index report and mounting geopolitical instability.
The combination has repriced Federal Reserve rate-cut expectations while simultaneously driving safe-haven demand — a two-front bid that MUFG says is difficult for rival currencies to counter.
Inflation Data Keeps the Fed Sidelined The CPI print that set this move in motion came in above market consensus, and stickiness in the US services sector is the part of the report that matters most to MUFG's analysis.
Services inflation is harder to shake than goods inflation, and that persistence keeps the Fed on what the bank calls a "more cautious footing" compared with other major central banks.
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