Dollar Gains More Ground as Traders Eye CPI
The US Dollar edged higher yet again, now on track for an 11th consecutive day of gains, even as investors focus on the upcoming release of inflation data to better gauge the Federal Reserve’s likely next move. Yesterday, the head of the Federal Reserve Bank, Janet Yellen, began testimony before the US Congress. Yellen pointed said that the FOMC would consider a rate hike at an upcoming meeting which suggested March or May to FX traders. If the CPI data meets analysts’ expectations at 2.4% in January, that will improve sentiment for that likelihood.
As reported at 10:24 am (GMT) in London, the EUR/USD was trading at $1.0548, down 0.28% and just off the session low; the pair earlier hit a peak of $1.0586. The GBP/USD was down 0.30% to trade at $1.2435, off the session low of $1.2418 while the high was set at $1.2475. The USD/JPY was up 0.20% to trade at 114.537 Yen; the session low was established at 114.2200 Yen while the peak was at 114.5900 Yen.
Swedish Krona Falls on Central Bank Rhetoric
In Sweden, the Swedish Krona edged lower after the central bank hinted at more interest rate cuts in the future in an attempt to suppress the Krona’s strength. According to the Riksbank, the exchange rate for the Krona is creating uncertainty regarding inflation. They further said that though the Krona had appreciated more than expected they did not expect it to continue. The EUR/SEK is currently higher at 9.4712 Swedish Krona, a gain of 0.22% while the USD/SEK is up 0.51% to trade at 8.9775 Swedish Krona.