The Dollar’s recent gains came to what investors hope is only a temporary pause as FX traders await today’s release of key inflation figures which could help pinpoint the Fed’s likely timing of its next move. Analysts are expecting a slight rise (to 1.8%) in August’s CPI (year-over-year) with a slight fall (to 1.6%) for the core inflation numbers. A disappointment in the CPI could result in a timing setback for a Federal Reserve rate hike. Analysts say that better than expected figures could support the greenback’s rebound, as markets are generally dovish in regard to Fed expectations.
As reported at 11:09 am (BST) in London, the EUR/USD was trading at $1.19, a gain of 0.04%; the pair had hit a peak of $1.19100 earlier in the session while the low stands at $1.18651. The GBP/USD is trading at $1.3206, up 0.01% and off the session peak of $1.3225. The USD/JPY is down 0.07% and trading at 110.42 Yen; the pair ranged from 110.320 Yen to 110.734 Yen in today’s trading day.
Aussie Higher on Strong Labor Data
In Australia, the Aussie Dollar had been lifted by labor data which showed that employment hit a 2-year high; the Employment Change (seasonally adjusted) came in at 54.2K, up from July’s 29.2%. Moreover, the Participation Rate for August came in at 65.3%, up from 65.1% in July. Though earlier trading at a peak of $0.80164, the AUD/USD had edged lower, and is currently trading at $0.80, a gain of 0.21%.