✍️Forex traders shrugged off a hotter-than-expected consumer price figure for December, leading the 💲dollar lower.

  • The dollar index #DXY retreated early on Friday, continuing its decline from a day earlier when a surprise bump in inflation caught forex traders in a limbo. December's consumer price index showed price pressures reared up again, landing at 3.4% against a 3.2% consensus.

  • First moves post-news saw the #US dollar sprinting fast, gaining around 0.6% to 102.80. By the end of the session, the greenback was back at its opening levels near 102.30. Traders appear to have maintained their firm belief that the Federal Reserve will indeed trim interest rates three times as indicated at the central bank's final meeting of 2023.

  • Against that backdrop, the dollar was fairly flat to close the day, after the elevated inflation-fueled whipsawing wore off. The to grind its way toward the 💲1.10 threshold, and the a one-month high of 💹146.41 to levels around 💹145.40. #EURUSD pair went back #USDJPY slippe$d from