US headline CPI dropped -0.1% mom in March, below expectation of 0.0% mom. But annual rate accelerated to 2.4% yoy, up fro 2.2% yoy and met expectation. Core CPI rose 0.2% mom, 2.1% yoy, up from 1.8% yoy in February, and met expectations.
CPI provides little support the USD. Rising geopolitical tension in Syria is weighing market sentiments and the greenback. Trump’s attention is now temporary away from China and back to Russia, with his tweeted to warn Russia of missiles in Syria.
USDJPY’s immediate focus in now on 106.61 minor support in early US session. Break will put 105.65 into focus.
FOMC minutes will be the next major focus in US session. But even something hawkish there is unlikely to give USD a lift.