Today the inflation data for July in the United States will be published. Antje Praefcke, currency analyst at commerzbanklooks at how the CPI report could affect the US dollar.
Dollar should not benefit from inflation data
According to our experts, the data will suggest that Fed rates have peaked. This means that the US dollar should not benefit from the data, as the publication will not question the rate pause in September and, at the same time, it will consolidate the opinion that there will not be a new step in November either.
Perhaps the market is quite content to be able to stay in the ranges of the summer for now, instead of having to manically trade back and forth on inflation data. Of course, the data could generate a few pip here or there, especially if the numbers deviate significantly from expectations, but I think everyone is pretty happy with EUR/USD levels around 1.10.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
