Dollar Struggles for Traction ahead of CPI

13 September 2017 11:05:52 AM

By: DailyForex.com

Some US Dollar investors are foreseeing a day on the sidelines as they await tomorrow’s release of inflation date to help them gauge Fed sentiment. Expectations are that a tepid outcome of CPI will weigh on prospects for another 2017 interest rate hike from the US Federal Reserve. Currently, analysts are predicting that August CPI figures will come in at 1.8% (month-over-month), up from 1.7%; meanwhile, core CPI, which excludes volatile components like food and energy, could fall to 1.6% from 1.7%.  That is generally weighing on the US Dollar which is under some broad pressure.

As reported at 11:13 am (BST) in London, the EUR/USD was trading at $1.1976, a gain of 0.10%; the pair had earlier hit a peak of $1.19949 while the session low is currently at $1.19630. The USD/JPY is down 0.11% and trading at 110.044 Yen, well off the session peak of 110.293 Yen. The AUD/USD is trading higher at $0.8034, a gain of 0.20% while the NZD/USD is just off the opening price at $0.7284, down 0.01%.

Pound’s Rally Slowed by Mixed Labor Data

The GBP/USD is currently down 0.24% and trading at $1.3256, moving well away from the session peak of $1.3329. Analysts say that that 1-year peak was the culmination of moves from yesterday after unexpectedly upbeat inflation data, both producer and consumer, which suggested to investors that the Bank of England could soon move toward a tighter monetary policy with, perhaps, an imminent rate hike. Today’s mixed labor data seems to have put the brakes to the Pound’s rally, however.

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.

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