USD gains ahead of the February Consumer Price Index (CPI) data. Stickier than expected figures should enliven the greenback a bit more, economists at Scotiabank report.

CPI may renew Fed hike bets

“Markets priced out all but any additional hikes from the Fed in the wake of the wobbles in US regional banks yesterday but today’s data could indicate that policymakers are still battling significant inflationary pressures which will mean that US rates still have to move a bit higher still.”

“The street is looking for a 0.4% gain in headline and core CPI in Feb and for headline inflation to fall to 6.0% (from 6.4%). Core prices are called a tenth lower from Jan at 5.5% YoY. US yields and the USD should perk up a bit more if inflation does look stickier than markets expect.”