Analyst: CPI Data May Be "Ignored," US-Iran Negotiations Become the Sole Variable

Odaily News: Foreign exchange analyst Giuseppe Dellamotta stated that, given the market focus is on US-Iran negotiations and the March inflation data increase is widely perceived as war-driven, the market is likely to overlook today's data, as everything hinges on the outcome of the US-Iran talks. We can see significant divergence in forecasts for overall CPI, while predictions for core CPI are more concentrated. The Federal Reserve currently maintains a firmly neutral stance but has left the door open for further policy tightening, should inflation expectations begin to rise or the war last longer than anticipated. The market expects about 7 basis points of easing by year-end, implying no rate hikes or cuts are projected for 2026. (Jin10)