US Dollar Stable, Markets Eye Middle East and Inflation Data
The US dollar index moved relatively stable at 100.9 on Monday (July 13th). This position remains close to the level it has held throughout July, as investors monitor developments in the Middle East conflict and the outlook for US monetary policy.
Tensions have escalated after the United States and Iran engaged in renewed military action. At the same time, the market has received conflicting reports regarding whether the Strait of Hormuz remains open to shipping. This has driven up oil prices as investors worry about potential disruptions to global energy supplies.
Market participants are now awaiting the release of US CPI and PPI data this week for the latest clues on inflation trends. Furthermore, Fed Chairman Kevin Warsh's testimony before Congress will also be a key factor in determining the direction of the central bank's interest rate policy.
In terms of market impact, the US dollar still has the potential to remain strong if inflation data indicates persistent price pressures. Currently, the market is pricing in at least one Fed rate hike this year, with the probability of a September hike hovering around 71%. The dollar weakened against the euro but strengthened against the yen after a Reuters report said Japan has no immediate plans to change the asset allocation of its state pension fund. (arl)
Source: Newsmaker.id
