The US Dollar remained close to the recently struck 10-day high, which had been pushed there on expectations that the latest US inflation data would have shown an increase. Indeed, the US Department of Labor Statistics reported that, on an annualized basis, core CPI rose to 2.3% in June, matching analysts' forecasts and beating the previous period's reading of 2.2% Analysts point out, however, that market worries over rising trade-related tensions between the US and China are keeping any potential gains limited.
As reported at 10:59 am (JST) in Tokyo, the USD/JPY was trading at 112.658 Yen, up 0.12%; the pair has ranged from 112.508 Yen to 112.770 Yen. The EUR/USD was trading lower at $1.1668, down 0.01%, while the GBP/USD was at $1.3185, down 0.13%.
Federal Reserve Policy Eyed
Thursday's economic data also helped cement expectations that the Federal Reserve will continue its gradual path of tightening, given the rise in inflationary pressures. Tomorrow, the Federal Reserve is due to release its semi-annual monetary report to the US Congress which could offer additional clues as to the way forward for the Fed.