US CPI came out weaker than expected, 0.1% vs 0.2% MoM (Core), with the YoY reading at 1.7%. The inflation is still running below 2% as previously pointed out by the FED, fueling volatility around the greenback. Even if inflation is still below the target, the FED committed to shrink the balance sheet this year, remarking anyway that its policies are not on a pre-set course but instead are data driven.

It is interesting to see now what will happen if also the next reading will be disappointing like this one, putting the FED in a difficult position regarding its next move.