Yesterday, USD strengthened against all major currencies.
The CPI m/m data released yesterday indicated a sharp increase in inflation in April. Measured from a year ago, annual inflation rose by 4.2%, the fastest since 2008.
During their talks yesterday, FOMC members Clarida and Bostic downplayed the sharp rise of inflation in April. Clarida highlighted that April’s data is only “one data point” and is likely going to be transitory while Bostic said that volatility in inflation is expected to last four to five months as the country is going through a turbulent time.
The Unemployment Claims data (Forecast: 487K, Previous: 498K) will be released later at 2030 (SGT).