The US dollar remained mostly unchanged today and stabilized for the past couple of days as traders waited for the release of inflation data later today.
Forecasts point to a slowdown in inflation for today’s data. However, the actual data could strongly impact the dollar’s performance as well as traders’ expectations over the next steps in monetary policy.
The Federal Reserve is still anticipated to maintain its interest rates unchanged next month but expectations continue to change regarding the Fed’s decision in May and later due to the uncertainty surrounding the path of inflation.
As a result, traders could also monitor the release of other important data points this week which could generate some volatility for the dollar.