USD slide extends as markets await CPI data on Wednesday. Economists at Scotiabank analyze the greenback’s outlook.

USD sentiment may sour a little more on Wednesday

The broader trend in the USD is soft and appears poised to remain so as markets start to factor in the likely peak in the Fed tightening cycle. 

USD sentiment may sour a little more on Wednesday when US CPI data for June is released. Headline inflation is expected to fall sharply, although progress on core inflation will be slower.