Currencies
Traders Are Ready for Dollar to Drop After US Inflation Data
- Index of one-week dollar risk reversals has fallen below par
- That signals traders see softer CPI reading weighing on dollar
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Currency traders are girding for a drop in the dollar in the wake of Wednesday’s key US inflation report.
Option traders have been accumulating bearish bets on the world’s reserve currency in the run-up to the release of the April consumer price index. That sent a normally positive index of one-week risk reversals below par on Tuesday for the first time in two months.