Dollar Remains Firm Ahead Of Inflation Data
(RTTNews) - U.S. dollar stayed firm against most of its major counterparts on Tuesday as traders awaited key U.S. inflation data for clues about the Federal Reserve's rate hike moves.
Data on consumer and producer price inflation, which are due to be released on Wednesday and Thursday, respectively, could have a significant impact on the outlook for interest rates.
Ahead of the data, CME Group's FedWatch Tool is currently indicating an 76.5 percent chance the Federal Reserve will leave interest rates unchanged at its next meeting in June.
Fed Chair Jerome Powell said following last week's rate hike that the central bank would take a "data-dependent approach" to future monetary policy decisions.
"The April CPI report is going to remind everyone that inflation is staying sticky," said Edward Moya, senior market analyst at OANDA. "The Fed won't be raising rates on a hot report, but it will justify calls that rates will stay higher for longer."
The dollar index climbed to 101.84 around mid morning, and despite easing to 101.65, remains well placed in positive territory with a gain of nearly 0.3%.
Against the Euro, the dollar firmed to 1.0963 from 1.1006, and is down slightly against Pound Sterling at 1.2623.
Against the Japanese currency, the dollar is up marginally, fetching 135.21 yen a unit. The dollar is firm at 0.6761 against the Aussie, and is stronger by about 0.11% against Swiss franc at CHF 0.8906.
The Loonie is marginally down against the dollar at C$1.3385, recovering from C$1.3408 as oil prices rebounded and settled higher.
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U.S. Industrial Production Pulls Back Slightly In July
