USD: Slightly bid into CPI – ING

💡 DMK Insight

The Dollar’s modest support ahead of US CPI is a signal for traders to watch closely. With SOL currently at $80.14, the tech-led risk-off sentiment could impact crypto markets, especially if the Dollar strengthens further. If CPI data comes in higher than expected, it could bolster the Dollar, leading to potential sell-offs in risk assets like cryptocurrencies. Traders should keep an eye on the correlation between the Dollar’s strength and SOL’s price action. A break below $78 could trigger further bearish sentiment, while a rally above $82 might indicate a recovery phase for SOL. Here’s the thing: while the Dollar’s short-term undervaluation against G10 peers provides some support, any unexpected CPI results could shift market dynamics rapidly. Watch for institutional reactions to the CPI release, as they often dictate short-term volatility in both forex and crypto markets.