Market attention is focused on the consumer price index report, due out on Wednesday.
He global dollar strengthened on Monday and recovered part of last week’s losses, while investors eagerly await data from inflation of USAafter Friday’s mixed payrolls report, which sparked uncertainty about the magnitude of any rate cut announced by the Fed. Federal Reserve (Fed) next week.
He dollar indexwhich measures the US currency against a basket of competitive currencies, rose 0.41%, while the euro fell 0.42% to $1.1037.
He Japanese Yen weakened 0.48% against the dollar to 143.01 per dollar, while the pound sterling was last trading at $1.3072, down 0.39% on the day. In turn, the yuan was down 0.4% at $7.1215 per dollar and spot gold was up 0.4% at $2,505.75 per ounce.
All eyes are on US inflation data
Market attention is focused on the US inflation report to be published on Wednesday, which could alter estimates ahead of the meeting on Tuesday 17 and Wednesday 18 of the FedReuters reported.
Friday’s long-awaited US employment data did not clarify for traders the question of whether the Federal Reserve would implement a rate cut of 25 basis points or a larger one of 50 basis points at its monetary policy meeting.
Although employment rose less than expected in August, the rate of unemployment declined and wage growth remained solid, indicating that the labor market The US economy is cooling, but not at a pace that justifies panic about the economy’s growth prospects.
Markets are pricing in a 25 basis point rate cut next week and a 25 percent chance of a larger half-point cut. On Friday, bets on a major cut reached 50 percent.
Fed policymakers signaled they are prepared to begin a series of rate cuts, as they see a cooling in the labor market which could accelerate into something more serious if there is no change in policy.
Source: Ambito
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