Wednesday’s consumer price index data could spark another shift in expectations if it points to a reacceleration in price pressures. Producer price data on Thursday and retail sales figures on Friday will offer further clues on the path of inflation. However, “we still expect the USD to stay more supported against G10 currencies until soft inflation data allows the market to price out near-term Fed rate hikes.” The yen weakened 0.84% to 159.14 per dollar, on pace for its steepest daily decline against the greenback in almost five months. Meanwhile, speculators increased their net long position in the dollar in the latest week to the highest level since December 2022.