Dollar dips mildly after US inflation data. Headline CPI slowed notably to 2.2% yoy in November, down from 2.2%. On the other hand, core CPI rose to 2.2%, up from 2.1% yoy. Both matched market expectations. Headline CPI peaked at 2.9% earlier in June while core CPI peaked at 2.4% in July.
For now, Fed is still widely expected to raise interest rate again next week, and most likely another one in March. But diminishing upside pressure in inflation could start to tie Fed’s hand beyond March 2019.
