Forex Dollar Dip

Dollar slips versus euro in response to tame CPI

The dollar erased its earlier gains on Wednesday in a knee-jerk reaction to a report showing U.S. consumer prices rose at an unexpectedly slower pace in April. Analysts said news that consumer prices rose by 0.2 percent in April, less than the 0.3 percent gain Wall Street analysts expected, did not change market perceptions that the Federal Reserve's interest rate cutting-campaign was almost over. The consumer price index rose 0.3 percent in March.
Rate implications are dollar negative, and that is the way the market has traded off this number," said Alan Raskin, chief international strategist at RBS Greenwich Capital in Greenwich, Connecticut.