Dollar Awaits CPI Data, Pound Continues to Strengthen Against Euro
The US dollar moved mixed against other major currencies on Tuesday, with market focus on the release of US consumer inflation (CPI) data. The Bloomberg Dollar Index edged down 0.1%, while the two-year US Treasury yield held steady at 3.77%. Economists expect core CPI (excluding food and energy) to rise 0.3% last month, the highest since January, up from 0.2% previously.
The pound strengthened after data showed the UK unemployment rate held steady at 4.7% for the three months to June, in line with expectations. GBP/USD managed to reverse a slight loss, while EUR/GBP fell 0.2% to 0.86285—its fourth consecutive daily decline and the lowest since July 31. Solid employment data provided support for the pound amid a weakening euro.
In other markets, the Australian dollar weakened 0.4% to 0.6490 after the Reserve Bank of Australia (RBA) cut interest rates for the third time this year. Governor Michele Bullock said the RBA did not yet have a firm estimate for the final level of its policy rate. Meanwhile, USD/JPY rose 0.2% to 148.44, its highest since August 1, extending its three-day rally. (ayu)
Source: Newsmaker.id
