US inflation before dollar fall
The dollar edged lower in early European trading on Monday as traders remained cautious ahead of the release of key U.S. inflation data that could provide further clues about FBI policy. Future Federal Reserve System.
As of 3:20 a.m. ET (7:20 p.m. Japan time), the dollar index, which tracks the U.S. dollar against a basket of six other currencies, was down 0.1% at 105.627.
US consumer price data attracting attention
The new week began with a weaker dollar as traders awaited the release of October's U.S. consumer price index for an update on the Fed's progress in reining in low-level inflation. Last year was the highest level in decades.
Inflation is expected to rise by 0.1% per month. CPI rose 0.4% in September due to an unexpected rise in rents, but also showed that underlying inflationary pressures had eased slightly. October's jobs report, which suggested labor market conditions are easing, could fuel rumors that interest rates could peak if the economic slowdown accelerates further.
But Fed Chairman Jerome Powell suggested last week that the fight against inflation may not be over yet and that the Fed could raise interest rates further, a view echoed by many of his Fed chairmen this week. Supported.
"While it's clear from the federal funds futures curve that the market remains highly skeptical about whether further rate hikes will occur, Powell's comments could be the culmination of recent resistance to gradual price adjustment. There is a sex.”
A number of Fed speakers are expected to contribute this week, especially in terms of leaving open the possibility of further rate hikes that could support the dollar, especially if inflation data shows prices are stabilizing. He is likely to agree with Chairman Powell.
As of 3:20 a.m. ET (7:20 p.m. Japan time), the dollar index, which tracks the U.S. dollar against a basket of six other currencies, was down 0.1% at 105.627.
US consumer price data attracting attention
The new week began with a weaker dollar as traders awaited the release of October's U.S. consumer price index for an update on the Fed's progress in reining in low-level inflation. Last year was the highest level in decades.
Inflation is expected to rise by 0.1% per month. CPI rose 0.4% in September due to an unexpected rise in rents, but also showed that underlying inflationary pressures had eased slightly. October's jobs report, which suggested labor market conditions are easing, could fuel rumors that interest rates could peak if the economic slowdown accelerates further.
But Fed Chairman Jerome Powell suggested last week that the fight against inflation may not be over yet and that the Fed could raise interest rates further, a view echoed by many of his Fed chairmen this week. Supported.
"While it's clear from the federal funds futures curve that the market remains highly skeptical about whether further rate hikes will occur, Powell's comments could be the culmination of recent resistance to gradual price adjustment. There is a sex.”
A number of Fed speakers are expected to contribute this week, especially in terms of leaving open the possibility of further rate hikes that could support the dollar, especially if inflation data shows prices are stabilizing. He is likely to agree with Chairman Powell.
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