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FX Daily: Post-US CPI trading may lead to fragile yen
May has so far brought a weak dollar, strong risk sentiment, and growing expectations for Federal Reserve easing. A data-gripped market may, however, need to find the next catalyst for a big move outside of data. Our US economist notes that existing homes sales and durable goods orders should be soft this week, although that appears to be a consensus call. The same should be true for the S&P PMIs on Thursday, which are anyway secondary in importance to the ISM surveys. Wednesday’s FOMC minutes (1 May meeting) could be quite interesting. Remember that the May meeting disappointed the hawks and some members (like Neel ... (full story)