Dollar Edges Down From 13-Month High Ahead of CPI Data

Dollar Edges Down From 13-Month High Ahead of CPI Data
Dollar Edges Down From 13-Month High Ahead of CPI Data
© Reuters.

By Geoffrey Smith 

Investing.com — The dollar weakened in early trade in Europe on Wednesday as markets regained their appetite for risk a little ahead of key inflation data later in the session.

By 3 AM ET (0700 GMT), the that measures the greenback against a basket of advanced economy currencies was down 0.2% at 94.362, only a little off the 13-month high it posted earlier in the week. was flat at 113.58. The dollar was also flat against the , in the absence of major news out of China overnight.

The rate of in the U.S. is expected to have stayed at 5.3% in September, with price inflation staying at 4.0%. Any number in excess of that is likely to feed expectations that the Federal Reserve will be forced to raise interest rates well before the end of next year.

Atlanta Fed President Raphael Bostic had that belief in the narrative of only ‘transitory’ inflation pressures – something that has guided Fed policy for the last 12 months – may be fading at the central bank. Bostic said there were increasing signs that the disruptions to supply chains that have been responsible for a large part of this year’s inflation will be around for longer than previously expected.  

Inflation data out of Europe earlier failed to generate any sort of surprise however, neither positive nor negative. data for the euro zone are also likely to be weak when they are released at 5 AM ET, given the poor numbers out of Germany last week.

As a result,  stayed close to the 15-month low it hit overnight at $1.1549, weighed on by the comparatively remote prospect of monetary tightening in the single currency area.

, by contrast, edged up 0.1% against the dollar to $1.3605 and was flat near its recent high against the despite data showing that disappointed in the three months through August.  The data still keep the pound on course for an interest rate hike before year-end, but it faces headwinds from a dispute with the European Union over the implementation of the Brexit agreement in Northern Ireland. The EU is due to present fresh proposals to lower the tension there later on Wednesday, while the Bank of England’s speaks at 10:30 AM ET.

Concerns about the global growth outlook had been alleviated a little on Tuesday as the International Monetary Fund left its forecast for 2022 global GDP growth unchanged at 4.9%, although it cut its forecast for the current year marginally.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Leave a Reply

Your email address will not be published. Required fields are marked *

New Brokers
3.3 rating
Plus500 is a leading provider of Contracts for Difference, delivering trading facilities on shares, cryptocurrencies, forex, commodities and indices.
2.8 rating
Buy & sell Crypto in minutes
IG
2.8 rating
IG Trade with the world’s No.1 CFD provider 17,000+ markets. Countless opportunities.
2.5 rating
Note: Investing involves risks. You can lose your deposit. We advise you to only invest in financial products which match your knowledge and experience.
2.8 rating
Interactive Brokers attracts active traders with low per-share pricing, an advanced trading platform.
AdonFinance
Risk Warning: The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory or other services by AdonFinance. In addition, the content of the website offers no opinion with respect to the suitability of any security or any specific investment. Trading foreign exchange, stocks, cryptocurrencies and commodities is potentially high risk and may not be suitable for all investors. The high level of leverage can work both for and against traders. Before any investment with any broker you need to carefully consider your targets, previous experience, and risk level. Forex trading can result in the loss of your money, as a result, you are expressly cautioned that you should never invest or trade with money that you cannot afford to lose. For the avoidance of doubt, AdonFinance's service provides Brokers reviews in the Financial market. AdonFinance, its subsidiaries, agents or affiliates will assume no responsibility whatsoever for your trading activity. © Copyright 2021 AdonFinance