Dollar Steadies Ahead of Key US Inflation Data: Inside G-10
The dollar traded in a tight range ahead of key US inflation data that may influence monetary policy and shape discussions around Federal Reserve leadership.
The Bloomberg Dollar Spot Index edged down 0.1%
Dollar-yen was sold on fix flows and in view of Japan’s 10-year government bond yield touching the highest level since 2008, according to an Asia-based FX trader
Commodity currencies edged higher after data show China’s economic growth exceeded expectations in the second quarter, with gross domestic product expanding 5.2% in April-June from a year earlier
Some Wall Street strategists are predicting an acceleration in US CPI data in June, expecting it to show tariff effects and upward pressure on market interest rates
“If we do see a 0.3% monthly CPI gain, the strongest since January, it should add fuel to the recent USD recovery, reinforcing the post-payrolls market shift away from a Fed easing until 4Q,” said Sean Callow, a senior FX analyst InTouch Capital Markets. “Chair Powell’s market credibility will be maintained, but he might want to turn off his social media alerts”
Source: Bloomberg
