Watching the dollar's reaction to recent CPI
It's interesting to see the dollar's resilience despite what some expected after the latest CPI print. There was a narrative building for a sharper pullback, but it hasn't materialized quite yet. I'm keeping a close eye on this as it impacts everything from commodities to broader equity flows. A strong dollar could continue to put pressure on things like $SI, which is already down almost 4% today, hovering around the $19.92 mark, not far from its daily low.
My watchlist is heavily weighted towards export-oriented companies in the US, as a weaker dollar would obviously be a tailwind. If the dollar strengthens further, it's a re-evaluation of that thesis for me. Also keeping an eye on how pairs like $EURCHF react; it's seen a slight bump today to 0.93905, but nothing major yet to signal a strong trend shift.
I agree, the dollar's strength is definitely a key factor to watch. While some of the initial CPI shock might be fading, the underlying narrative around rate differentials and global growth seems to be providing persistent support. It'll be interesting to see how long this trend holds, especially with other central banks potentially looking to pivot.