The Consumer Price Index was weaker than expected as Trump’s teams study a gradual tariff increase.
He global dollar weakened on Tuesday against euro, but remained near its highest level in more than two years, as data from inflation Colder-than-expected weather after last week’s strong jobs report made it difficult to project the company’s next moves. United States Federal Reserve (Fed) on interest rates.
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He dollar index — which measures the performance of the greenback relative to a basket of six other internationally relevant currencies — fell 0.14% to 109.25, below the 26-month high of 110.17 reached on Monday . In October 2022 it reached 114.78, its highest level since 2002.


Meanwhile, the euro rose 0.51% and stood at $1.0297. It hit $1.0177 on Monday, its lowest level since November 2022. The single currency fell more than 6% in 2024 as investors worried about tariff threats and the divergence of monetary policy between the Fed and he European Central Bank.
The pound sterling, which fell 0.04% to $1.2198, also hit a two-and-a-half-month low against the euro, as concerns over the fiscal challenges of the United Kingdom They continued to weigh.
The United States data
The data showed that producer prices in USA increased moderately in December. Investors had already begun to reduce their bets on rate cuts, as possible duty They were still the center of attention.
He dollar trimmed its gains later in the session as traders cautiously awaited the U.S. market report. consumer price index on Wednesday. Investors have been closely monitoring economic data to see if it supports the Fed’s cautious stance on rates.
“Traders may be covering the other side of the market now ahead of tomorrow’s CPI, so we are seeing some pre-release volatility that is keeping the dollar a little depressed,” he said. Helen Given, associate director of operations at Monex USA in Washington. “The tariff news is the main driver, it seems, of the price action today.”
Traders are pricing in the first rate cut in September, but less than the 50 basis points the Fed projected in December. Now that the president-elect donald trumpAs he prepares to begin his second term next week, attention has focused on his policies that analysts expect will boost growth and price pressures.
The threat of tariffs, coupled with fewer Fed rate cuts already priced into prices, has lifted Treasury yields and supported the dollar.
Source: Ambito

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