In the United States, December inflation figures will be published on Thursday. Commerzbank economists analyze how the CPI report could affect the dollar.
The Dollar will quickly return to the penalty area after weak figures
Those hoping for a clearer signal of an imminent rate cut from the Fed following the jobs report will likely be disappointed. Yes, inflation in the United States continues to fall. But not very fast, according to our experts. An increase of around 0.25% month-on-month for both the headline and core rates does not indicate a rapid decline in inflation. According to our experts, the general rate could even rise slightly to 3.2% year-on-year in December. The underlying rate is likely to remain at an uncomfortable 3.8%.
Perhaps the inflation figures will be able to stop the dollar's downward trend. But I fear that the Dollar will quickly return to the penalty area due to weak numbers.
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.
