Today’s US CPI data briefly sent the dollar higher against the euro before the move reversed. While stronger than expected, these inflation figures do not alter the outlook for when the US Federal Reserve may hike interest rates, says Saxo Bank’s Mads Koefoed.

He expects inflation in the United States to remain below the US Federal Reserve’s 2% target due to lower energy prices. Mads Koefoed therefore maintains that the Fed is unlikely to hike rates in June and he expects markets will have to wait at least until Q3 for the Fed to move.

EURUSD has seen some choppy price action since last week’s FOMC meeting. Earlier today, the euro strengthened against the dollar on strong PMI data out of Europe.