Dollar in Limbo as Investors Await Key U.S. Economic Data
On Tuesday, the dollar was stagnant as investors anticipated U.S. economic data that could influence rate cuts. Japanese stocks rallied, helping yen trades. The dollar index remained steady, while future inflation reports, particularly the CPI and retail sales for July, will significantly impact Federal Reserve decisions.
![Dollar in Limbo as Investors Await Key U.S. Economic Data](https://devdiscourse.blob.core.windows.net/aiimagegallery/26_06_2024_06_03_44_2134291.png)
On Tuesday, the dollar found itself in limbo as investors remained on edge, awaiting U.S. economic data that could potentially sway the likelihood of substantial rate cuts. Concurrently, a surge in Japanese stocks provided temporary relief to yen carry trades.
The greenback held steady at 147.17 yen, briefly touching a one-week peak of 148.23 overnight before profit-taking set in. Meanwhile, the euro edged up, standing at $1.0931 and inching closer to resistance levels at $1.0944 and $1.0963. The dollar index remained unchanged at 103.08.
Upcoming producer price figures set for release later in the day are expected to set the stage for an important inflation report on Wednesday, which markets will be closely monitoring. Predictions suggest a 0.2% rise in both headline PPI and core measures, feeding through to the core PCE measure favored by the Federal Reserve. However, the more crucial consumer price and retail sales reports for July could impact whether the Fed opts for a 25 basis point or a 50 basis point rate cut in September, with futures markets currently undecided.
(With inputs from agencies.)
- READ MORE ON:
- dollar
- investors
- U.S. economic data
- rate cuts
- U.S. inflation
- Japanese stocks
- JPY
- Euro
- USD
- index
ALSO READ
Dollar Steadies Amid Key U.S. Inflation Data Anticipations
Emerging Market Currencies Rise as Dollar Weakens Ahead of U.S. Inflation Data
Dollar Steady, Investors Eye U.S. Inflation Data and Fed Rate Cuts
Dollar Rebounds as Investors Await Key U.S. Inflation Data
Dollar Rallies as Global Currencies Weaken Ahead of U.S. Inflation Data