Dollar Steadies Ahead of Inflation Data
The dollar index held around 97.8 on Wednesday after firming in the prior session, as investors awaited key inflation reports that could influence the Federal Reserve’s policy stance.
The producer price index is due later today, followed by the consumer price index on Thursday. On Tuesday, the Bureau of Labor Statistics said the economy likely created 911,000 fewer jobs in the 12 months through March, or roughly 76,000 fewer jobs per month, pointing to a softer labor market than previously estimated.
Combined with last week’s weak August jobs report, the data bolstered expectations for a 25 basis point Fed rate cut next week, while some traders are positioning for a larger 50 basis point move. Overall, markets are pricing in 66 bps of easing this year.
Source: Trading Economics
