Dollar Pressured by Weaker-Than-Expected US CPI Report

The dollar index (DXY00) on Friday ended the day little changed. The dollar was undercut by Friday’s slightly-weaker-than-expected US CPI report, which gave the Fed a bit more latitude to cut interest rates.  The dollar was also undercut by Friday’s -0.6 bp decline in the US 10-year T-note yield, which hurts the dollar's interest rate differentials. The Sep US CPI report of +0.3% m/m and +3.0% y/y was slightly weaker than market expectations of +0.4% m/m and +3.1% y/y.  Also, the Sep core CPI report of +0 ...