Home Business News Dollar steady ahead of inflation data and the Fed rate decision

Dollar steady ahead of inflation data and the Fed rate decision

12th Jun 24 12:16 pm

The dollar remained steady, with its index above 105 points as investors remain cautious ahead of the US inflation data release and the Federal Reserve interest rate decision.

The greenback advanced for three consecutive sessions after stronger-than-expected US employment data on Friday, which prompted market participants to scale back their bets on the Fed rate cuts.

Traders could remain focused on the upcoming headline US Consumer Price Index (CPI), which is expected to ease slightly to 0.1% from 0.3%. The dollar and Treasury yields could be pressured if inflation figures come lower than the market consensus.

At the same time, the Federal Reserve is expected to maintain rates unchanged. However, the attention could turn to the policymakers’ revised economic forecasts, the dot plot, and Chair Jerome Powell’s press conference in search of clues about forthcoming rate adjustments.

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