Dollar Firms Up as Inflation Data Eyed
The dollar index rose to around 101.7 on Tuesday, gaining for the third straight session as investors look forward to key US inflation data this week that could offer clues on the potential scale of an expected interest rate cut from the Federal Reserve later this month.
The August payrolls report released on Friday provided little clarity on the rates path, with the US economy adding less jobs than expected, while the unemployment rate edged lower and wage growth remained solid. Meanwhile, Fed Governor Christopher Waller said last week that the time has come to lower rates at the upcoming meeting, and indicated he'd be open to a substantial reduction if necessary.
New York Fed Bank President John Williams shared the same view, adding that incoming economic data will determine the course of rate cuts. The dollar strengthened across the board, hovering at three-week highs on the euro, sterling, aussie and kiwi.
Source : Trading Economics
