Dollar Loses Ground Against Major Counterparts After Inflation Data

RTTNews | vor 728 Tagen

(RTTNews) - The U.S. dollar drifted lower against its major counterparts on Tuesday after data showing a slowdown in consumer price inflation raised hopes the Federal Reserve will pause rate increases when it announces its monetary policy decision on Wednesday.

Data from the Labor Department showed the consumer price index inched up by 0.1% in May after climbing by 0.4% in April. Economists had expected prices to tick up by 0.2%.

Core consumer prices rose by 0.4% in May, matching the increase seen in each of the two previous months as well as economist estimates.

The Labor Department also said the annual rate of consumer price growth slowed to 4% in May from 4.9% in April. The annual rate of core consumer price growth also slowed to 5.3% in May from 5.5% in April, in line with expectations.

Following the release of the report, CME Group's FedWatch Tool is indicating a 91.9% chance the Fed leaves interest rates unchanged.

The dollar index dropped to 103.05 soon after the release of the consumer inflation data, and despite recovering some lost ground subsequently, remains more than 0.3% down at 103.30.

Against the Euro, the dollar has weakened to 1.0793 from 1.0759. The dollar is weak against Pound Sterling at 1.2610, easing from 1.2514.

Against the Japanese currency, the dollar is strong, fetching 140.23 yen a unit, nearly 0.5% more than the previous close of 139.60 yen.

The dollar is weak against the Aussie at 0.6765. Against Swiss franc, the dollar has firmed to CHF 0.9051, and against the Loonie, is trading at C$1.3316, with higher oil prices strengthening the Canadian currency.

Gold Dips As US-China Trade Talks Continue

Gold prices dipped on Tuesday, ahead of US inflation report and ongoing US-China official talks, which is now the focus of investors from all over the world. Front Month Comex Gold for June delivery lost $11.20 (or 0.34%) to $3320.90 per troy ounce on Tuesday. Front Month Comex Silver for June delivery lost $14.60 cents (or 0.40%) to $36.542 today. The much-anticipated high-level trade talks between the world's two largest economies, U.S. and China, began on Monday in London and continued for the second day today. On the economic data front, the US Labor Department will release Consumer Price Index (CPI) data on Wednesday, which may help to determine the Federal Reserve's monetary policy before the Fed's June 17-18 meeting. Meanwhile, the World Bank, in its biannual Global Economic Prospects, has cut the global growth forecast to 2.3% from 2.7% for the current year citing "trade barriers" as a reason behind the global slowdown.

RTTNews | vor 1Std 40 Minuten

Crude Oil Prices Fade As US-China Talks Progress

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RTTNews | vor 1Std 46 Minuten

Canadian Dollar Appreciates Amid Risk Appetite

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RTTNews | vor 2Std 26 Minuten

Swiss Market Ends Marginally Down

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RTTNews | vor 3Std 51 Minuten

European Stocks Close On Mixed Note

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TSX Up Marginally; Energy Stocks Rise

After a flat start and a subsequent climb up north, the Canadian market retreated Tuesday morning, and at a little past noon, was up marginally, led by gains in energy, consumer and communications sectors. Investors are cautiously optimistic about some positive progress in U.S.-China trade relations.

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Eurozone Investor Confidence Strongest In A Year: Sentix

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RTTNews | vor 8Std 45 Minuten

EURUSD	1.14239	GBPUSD	1.34954	AUDUSD	0.65225
USDJPY	144.824	USDCAD	1.36701	USDCHF	0.82215

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Dollar Loses Ground Against Major Counterparts After Inflation Data