April’s mild consumer inflation reading in the U.S. weighs down on the dollar, DHF Capital’s Erik Boekel says in a note. Annual CPI slowed to 2.3% from 2.4%. “The softer-than-expected reading could reinforce expectations that the Federal Reserve could adopt a more dovish stance,” keeping the dollar under pressure, he says. Boekel adds that “the full impact of tariffs may still be unfolding, adding a layer of uncertainty.” The WSJ Dollar Index falls 0.3% as the greenback weakens 0.8% versus the yen and 0.3% against the euro.

Sources: The Wall Street Journal