"US Dollar's CPI-Induced Rally Pauses Amid Rate Cut Uncertainty"

The US dollar has retreated most of its gains following soft retail sales, dropping below the 61.8% retracement level. Other currencies like the Australian and New Zealand dollars have fully recovered, while the pound remains weak. The yen is facing its own challenges amid uncertainty about rate hikes. Market pricing for the year is now at 100 bps after briefly falling to 90 bps post-CPI, with Waller's comments potentially influencing the significance of the CPI numbers.