US Dollar: forecast for April 18-24
By Kira Iukhtenko
Core inflation in United States rose by 0.1% in March, down from 0.3% in February. The weaker readings were driven by a monthly fall in clothing prices and lower healthcare inflation. Below-the-forecast reading adds to uncertainty about the further Fed’s policy moves. We believe that the prospects of the US currency remain subdued in the current conditions.
However, the Qatar oil producers’ meeting on Sunday, April 17th, is a risk to our main scenario. Disappointment from the meeting could trigger a sharp US Dollar correction to the upside, so beware this risk.
As for the economic calendar, on the new week we’ll pay attention to the housing market figures on Tuesday and the crude oil inventories data on Wednesday. On Thursday watch the Philly Fed Manufacturing Index.