FX Closing Comments

The Dollar cooled-off today after a full 7 days of gains. Even thought today's core CPI implied further rate hikes ahead, it seems that many long-Dollar traders chose today to take some profits. With the Fed funds pricing a 100% probability of a .25% rise in June, the likelihood of any additional rate premium was unlikely, in the absence of a July Fed meeting. In short, it was a good time to pause and lock-in profits. Tomorrow will bring weekly jobless claims, the Empire manufacturing index, and industrial production.