US Dollar steadies on quiet Monday ahead of US CPI data

NEW YORK (May 13) The US Dollar (USD) is trading flat and quiet on Monday, with the DXY US Dollar Index right in the middle of last week’s range at 105.30.  The week starts calm on the economic data front, but it will get busier as days go by with the release of the US Producer Price Index (PPI) numbers on Tuesday and the Consumer Price Index (CPI) data on Wednesday. 

On Monday, two US Federal Reserve (Fed) members are set to take the stage: Federal Reserve Vice Chair Phillip Jefferson is set to deliver opening remarks and participate in a Q&A session at the Theory and Practice conference in Cleveland. Jefferson will be joined by Federal Reserve Bank of Cleveland President Loretta Mester in that same session. Both Fed speakers are voting members at the Federal Open Market Committee (FOMC) for this year. 

Daily digest market movers: Dull Monday ahead

• A very quiet start to this week is expected. No real outliers to report on the quote board, besides the Czech Krona (USD/CZK), which is outperforming against the Greenback by nearly 0.50%. 
• At 13:00 GMT, Fed Vice Chair Phillip Jefferson and Federal Reserve Bank of Cleveland President Loretta Mester will both participate in a Q&A session at the Theory and Practice conference in Cleveland.
• The US Treasury Department will auction a 3-month and a 6-month bill around 15:30 GMT. 
• The equity markets started the week very mixed after the German Dax posted a fresh historic high on Friday.  Investors seem to be keeping their powder dry for later this week. 
• The CME Fedwatch Tool suggests a 96.5% probability that June will still see no change to the Federal Reserve's fed fund rate. Odds of a rate cut in July are also out of the cards, while for September the tool shows a 48.6% chance that rates will be 25 basis points lower than current levels.
• The benchmark 10-year US Treasury Note trades around 4.48%, around the lower range for this Monday after hitting 4.94% earlier. 

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