USD review

Rate hike constructive U.S. inflation data helped the dollar pare declines that had it on course for its worst week in a month. U.S. consumer prices rose for the second time in as many months, rising 0.2% (m/m) in March. Less volatile core prices rose 1.8% annually, the most since October, from 1.7%. 

The small step in the right direction for inflation can serve as a green light for the Fed to boost interest rates this year. U.S. yields perked up on the news, with the 10-year around 1.90% from 1.85% earlier. 

Consumer optimism remains within a few points of decade highs, which bodes well for the outlook for consumer spending, the main engine that drives the U.S. economy.