Forex News

Dollar hits new two-month low ahead of key U.S. inflation report

2023.07.12 04:20


© Reuters.

Investing.com – The U.S. dollar slumped to its lowest level in two months in early European hours Wednesday ahead of a crucial U.S. inflation report, while sterling climbed to a fresh 15-month high on expectations of further U.K. rate rises.

At 03:15 ET (07:15 GMT), the , which tracks the greenback against a basket of six other currencies, traded 0.3% lower to 101.140, extending its losses from the beginning of the week after a number of Fed officials indicated the central bank was nearing the end of its monetary policy tightening cycle.

U.S. CPI to drive dollar sentiment

An interest rate hike of 25 basis points at the meeting later this month is largely priced in, but the U.S. consumer inflation report, due later in the session, could help dictate how many more hikes are left in the tank.

The headline is expected to have risen by 3.1% in June, after May’s 4% increase, which would be the slowest annual increase since March 2021, with a 0.3% increase. The annual rate is seen falling to 5% from 5.3%, dropping for the third consecutive month.

“Our economist expects a consensus 0.3% month-on-month core read, which should keep providing encouraging news on the disinflationary story – but should still fall short of tweaking the Fed narrative or convincing markets to price out a July hike,” said analysts at ING, in a note.

Sterling climbs to new 15-month high

rose 0.1% to 1.2945, just below a new 15-month high of 1.2970 reached earlier in the session as traders expect more interest rate increases from the with is running at the highest rate of any major economy.

British rose at the joint-fastest pace on record, data showed on Tuesday, putting more pressure on the BoE to act, while the U.K. central bank’s , released earlier Wednesday, stated that the country’s banks are “strong enough” to deal with the risk of a growing mortgage rate crisis.

rose 0.2% to 1.1025, just below a two-month peak, with soft data failing to dent expectations of further interest rate hikes to come by the .

Bank of Canada set to hike again

fell 0.1% to 1.3224, ahead of the Bank of Canada’s latest , which is expected to result in a second consecutive quarter-point interest rate hike.

In June, the central bank raised its overnight rate to 4.75% after a five-month pause, saying monetary policy was not restrictive enough given inflationary pressures.

fell 0.6% to 139.58, with the yen looking likely to register a fifth session of gains, the longest winning streak in about seven months as U.S. Treasury yields retreated sharply.

rose 0.1% to 0.6693, while rose 0.1% to 0.6205 after the kept rates on hold, as expected.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 78,901.14 3.41%
ethereum
Ethereum (ETH) $ 3,117.59 1.20%
tether
Tether (USDT) $ 0.999802 0.10%
solana
Solana (SOL) $ 202.29 1.87%
bnb
BNB (BNB) $ 617.41 0.25%
dogecoin
Dogecoin (DOGE) $ 0.257615 22.94%
usd-coin
USDC (USDC) $ 0.998799 0.11%
xrp
XRP (XRP) $ 0.577347 4.64%
staked-ether
Lido Staked Ether (STETH) $ 3,125.42 1.48%
cardano
Cardano (ADA) $ 0.568343 27.59%
shiba-inu
Shiba Inu (SHIB) $ 0.000024 25.06%
tron
TRON (TRX) $ 0.163418 1.56%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,725.00 2.11%
the-open-network
Toncoin (TON) $ 5.16 1.58%
avalanche-2
Avalanche (AVAX) $ 30.72 4.69%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 79,086.19 3.91%
weth
WETH (WETH) $ 3,128.59 1.56%
chainlink
Chainlink (LINK) $ 13.95 2.93%
bitcoin-cash
Bitcoin Cash (BCH) $ 428.21 11.98%
sui
Sui (SUI) $ 2.85 9.78%
polkadot
Polkadot (DOT) $ 5.08 13.73%
leo-token
LEO Token (LEO) $ 6.61 2.74%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,280.87 1.35%
litecoin
Litecoin (LTC) $ 74.71 3.12%
near
NEAR Protocol (NEAR) $ 4.56 0.23%
usds
USDS (USDS) $ 0.994261 0.54%
aptos
Aptos (APT) $ 10.53 4.34%
uniswap
Uniswap (UNI) $ 8.90 1.05%
pepe
Pepe (PEPE) $ 0.000012 8.73%
internet-computer
Internet Computer (ICP) $ 8.79 5.91%
bittensor
Bittensor (TAO) $ 536.62 6.76%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.44 0.51%
kaspa
Kaspa (KAS) $ 0.145051 16.24%
ethereum-classic
Ethereum Classic (ETC) $ 22.42 7.64%
dai
Dai (DAI) $ 0.999222 0.09%
crypto-com-chain
Cronos (CRO) $ 0.118494 15.52%
stellar
Stellar (XLM) $ 0.106509 5.72%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.395183 4.42%
monero
Monero (XMR) $ 162.34 0.22%
whitebit
WhiteBIT Coin (WBT) $ 20.65 3.23%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.10%
aave
Aave (AAVE) $ 184.35 5.60%
blockstack
Stacks (STX) $ 1.74 5.44%
dogwifcoin
dogwifhat (WIF) $ 2.60 6.88%
mantle
Mantle (MNT) $ 0.760615 5.92%
okb
OKB (OKB) $ 42.85 5.58%
filecoin
Filecoin (FIL) $ 4.14 5.80%
arbitrum
Arbitrum (ARB) $ 0.611153 2.10%
injective-protocol
Injective (INJ) $ 24.23 6.29%
first-digital-usd
First Digital USD (FDUSD) $ 0.989832 1.06%