Daily Morning Report 11.05.2018 

The dollar slid from this year’s high after the U.S. released soft CPI data but rose slightly against the other major currencies on Friday in Asia as sentiment picked up as investors trimmed expectations for four rate hikes after the slower-than-expected inflation report showed prices pressures remained weak. 

The U.S. Labor Department said on Thursday its consumer price index (CPI) rose 0.2% last month missing expectations for a 0.3% rise. While year-on-year the CPI rose 2.1% in April, also missed economists’ forecast. 

The CPI measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation. The data showed further evidence of a slowdown in inflation and signaled a lower outlook for Federal Reserve to add another rate hike in the future. 

The USDJPY pair added 0.07% at 109.47. Japan saw a light week of data this week but will release its GDP figures next Wednesday. 

Elsewhere, the AUDUSD was at 0.7530. The Aussie reacted little to the bearish data after Australia’s home loans data came in -2.2%, worse than the expected -1.9% and the previous’ -0.2%.