Dollar Edges Lower Ahead of Key CPI Release By Investing.com

0
27
© Reuters

By Peter Nurse

Investing.com — The dollar edged lower Tuesday, with traders waiting for the release of the latest U.S. inflation numbers for guidance on the timing of the start of the Federal Reserve’s stimulus withdrawal.

At 2:55 AM ET (0755 GMT), the , which tracks the greenback against a basket of six other currencies, traded marginally lower at 92.627, having retreated from Monday’s two-week high of 92.887. 

rose 0.1% to 110.09, was flat at 1.1808, having bounced back from Monday’s low of 1.1770, its lowest since Aug. 27, while edged higher to 1.3838, helped by U.K. showing that the total number of payrolled employees climbed in August above their level in February 2020, just before Britain first went into Covid-19 lockdown.

The main focus Tuesday will be on the release of the U.S. consumer price data, at 8:30 AM ET (1230 GMT), especially with the Federal Reserve’s next policy review being so close, on Sept 21-22.

Annual is expected to dip slightly to 5.3% from 5.4% in July, while , an index which strips out volatile energy and food prices, is seen easing slightly annually to 4.2% from 4.3% in July.

“Recent Fed communication has not diverged from the view that inflationary pressures have a transitory nature, so even in the event of another rise in inflation we doubt Fed rate expectations – and by extension, the dollar – will be particularly impacted,” said analysts at ING, in a note.

The Wall Street Journal reported on Friday that Fed officials will seek an agreement to begin paring bond purchases in November.

Elsewhere, the risk sensitive dropped 0.4% to 0.7335, after Australian central bank chief Philip Lowe pushed back against market pricing for early interest-rate increases.

“I find it difficult to understand why rate rises are being priced in next year or early 2023,” Lowe said earlier Tuesday. “While policy rates might be increased in other countries over this time frame, our wage and inflation experience is quite different.”

 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.