U.S. Dollar Lower Ahead Of Inflation Data
September 11 2023 - 5:24AM
RTTF2
The U.S. dollar fell against its most major rivals in the
European session on Monday, as investors await U.S. inflation data
that could influence the Federal Reserve's interest rate path for
the rest of the year.
The CPI is expected to have increased 3.6 percent in August from
3.2 percent in the prior month. Meanwhile, the core reading is seen
softening to 4.3 percent from 4.7 percent.
This week will also see the release of key U.S. reports on
producer inflation, retail sales, industrial production and
consumer sentiment.
CME Group's FedWatch Tool currently indicates a 93.0 percent
chance the Federal Reserve will leave interest rates later this
month but a 43.4 percent chance of another rate hike in
November.
Risk sentiment improved as the latest inflation data from China
stoked optimism about easing deflationary pressures in the world's
second-largest economy.
The greenback dropped to 1.2537 against the pound, setting a
5-day low. Next key support for the greenback is possibly seen
around the 1.27 level.
The greenback was down against the euro, at 1.0741. The currency
may challenge support around the 1.09 region, if it drops
again.
The greenback weakened to 6-day lows of 0.6443 against the
aussie and 0.5933 against the kiwi, from its prior highs of 0.6376
and 0.5880, respectively. The greenback is seen finding support
around 0.67 against the aussie and 0.62 against the kiwi.
The greenback depreciated to a 1-week low of 1.3579 against the
loonie and a 10-day low of 145.89 against the yen, off its early
highs of 1.3636 and 147.27, respectively. The next possible support
for the currency is seen around 1.33 against the loonie and 137.00
against the yen.
After falling to a 5-day low of 0.8893 against the franc in the
previous session, the greenback rebounded modestly in subsequent
deals. The pair had closed Friday's deals at 0.8928.
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From May 2024 to Jun 2024
US Dollar vs CAD (FX:USDCAD)
Forex Chart
From Jun 2023 to Jun 2024