Looming Inflation Data Leading To Lackluster Performance By U.S. Dollar
(RTTNews) - The value of the U.S. dollar has shown a lack of direction over the course of trading on Wednesday as traders look ahead of the release of key inflation data.
The U.S. dollar index has spent much of the day lingering near the unchanged line and is currently down just 0.02 points or less than a tenth of a percent at 102.51.
The greenback is trading at 143.70 yen compared to the 143.38 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.0972 compared to yesterday's $1.0956.
On Thursday, the Labor Department is scheduled to release its closely watched report on consumer price inflation in the month of July.
Economists expect the report to show consumer prices rose by 0.2 percent in July, matching the uptick seen in June. Core consumer prices, which exclude food and energy prices, are also expected to rise by 0.2 percent for the second straight month.
The annual rate of consumer price growth is expected to accelerate to 3.3 percent in July from 3.0 percent in June, while the annual rate of core consumer price growth is expected to hold at 4.8 percent.
Traders will be looking for the report to reinforce expectations that the Federal Reserve will leave interest rates unchanged next month.
CME Group's FedWatch Tool is currently indicating an 86.5 percent chance the Fed will leave rates unchanged in September.
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