The dollar remained stable ahead of the recent U.S. data. The data anticipates a small moderation in the high inflation in the biggest economy in the world.
The US Dollar Index compares the dollar’s value to a basket of other significant global currencies. This index was down just 0.04% at 106.33 as of 02:30 AM EST (0630 GMT). It is anticipated that the July U.S. consumer price index will register at 8.7%, down from the sky-high level of 9.1% reached in the preceding month. The CPI will be released at 8:00 AM EST (12:30 GMT). Even if prices continue their rise to the highest point in four decades, a fall may indicate inflation at its peak.
Will We See a Decline in Rates?
A decline will not be able to alter the fed’s decision, as the fed has aggressively raised interest rates to rein inflation. Fed expects many months of CPI growth declines before stopping rate tightening. Before deciding, the central bank will consider a series of August economic indicators.
China’s consumer and producer prices climbed at a slower-than-anticipated rate in July. This rate indicates that the nation is still struggling with the COVID-19 lockdowns and their aftermath.
Following the data in offshore trading, the USD/CNH was withdrawn slightly versus the dollar. While the NZD/USD was unchanged at $0.6284, the AUD/USD was still holding just above its 50-day MA at $0.6960. The Japanese yen decreased 0.08% to JPY 135.05.
In the meantime, the German CPI increased 0.9% every month in July while barely declining to 7.5% yearly. The movements indicate that pricing pressures remained intense in Europe’s largest economy.
