Forex Signals Brief May 14: USD Sellers Return After Soft US CPI Inflation

While inflation is cooling, it’s not enough to force the Fed’s hand just yet. Equities and oil are holding firm, but behind the scenes...

CPI inflation cooled in April

Quick overview

  • The latest U.S. CPI report showed softer inflation at 2.3%, leading to a decline in the U.S. dollar and cautious Fed rate cut expectations.
  • Equities and oil markets remain stable despite currency volatility, with the S&P 500 showing strong buying interest.
  • Gold prices have retreated from record highs, correcting nearly $140, as investors rotate into risk assets amid optimism from a new U.S.-UK trade agreement.
  • Bitcoin has surged above $100,000, driven by positive sentiment around international trade relations, while Ethereum rebounded significantly following its Pectra upgrade.

While inflation is cooling, it’s not enough to force the Fed’s hand just yet. Equities and oil are holding firm, but behind the scenes, shifting FX flows, faltering gold prices.

ABOUT THE AUTHOR See More
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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