<\/p>\n\n\n\n
The dollar consolidated against major peers on Monday as market participants awaited U.S. inflation data to assess the prospects of interest rate cuts this year.<\/p>\n\n\n\n
After a softer-than-expected U.S. payrolls report for April and seemingly dovish Federal Reserve policy announcement earlier this month, expectations have increased for rate reductions this year.<\/p>\n\n\n\n
Markets have priced in a 61.2% chance of some degree of rate reductions to begin at the Fed’s September meeting, with about 50 basis points of cuts in total expected, CME’s FedWatch Tool showed.<\/p>\n\n\n\n
But comments by Fed officials last week were varied as speakers debated whether interest rates were high enough. A jump in consumers’ inflation expectations, revealed in a survey on Friday, could further complicate the conversation.<\/p>\n\n\n\n
With recent data indicating the economy is slowing, investors are looking to confirm how sticky inflation is.<\/p>\n\n\n\n
The market will have a chance this week, with inflation readings in the form of the producer price index (PPI) on Tuesday followed by the consumer price index (CPI) on Wednesday.<\/p>\n\n\n\n
The dollar index, which measures the greenback against a basket of currencies, was flat at 105.31, following its first weekly gain last week after two successive weeks of decline.<\/p>\n\n\n\n
“This week’s CPI will be crucial for the Federal Open Market Committee’s (FOMC) decision to start easing rates in September,” said Carol Kong, a currency strategist at the Commonwealth Bank of Australia (OTC:CMWAY).<\/p>\n\n\n\n
Fed Chair Jerome Powell will make an appearance on Tuesday at a meeting of the Foreign Bankers’ Association in Amsterdam.<\/p>\n\n\n\n
Intervention Jitters<\/strong><\/p>\n\n\n\n As markets look ahead this week to U.S. CPI, the yen won’t be far from traders’ minds amid an ongoing risk of currency intervention by Japanese authorities.<\/p>\n\n\n\n Against the yen , the dollar was holding solid at 155.80, after touching its highest since May 2 at 155.965.<\/p>\n\n\n\n The dollar has marched up against the yen after a 3% decline at the start of the month, its steepest weekly percentage drop since early December 2022, after two suspected interventions.<\/p>\n\n\n\n Those spikes of yen strength appear to have spooked some yen bears, at least for now.<\/p>\n\n\n\n Yen futures data from the CFTC showed non-commercial short positions have fallen sharply from the 179,919 contracts on April 23, which was the most since June 2007.<\/p>\n\n\n\n The currency received some support on Monday after the Bank of Japan sent a hawkish signal by cutting its offer amount for a segment of Japanese government bonds in the Asian morning.<\/p>\n\n\n\n The euro was little changed at $1.07695 as the euro zone prepares for an inflation reading of its own on Friday.<\/p>\n\n\n\n Sterling was firm at $1.2522.<\/p>\n\n\n\n China’s offshore yuan slid 0.1% to 7.2414 while the onshore yuan fell to its lowest since April 30 at 7.2385, as traders awaited an announcement from the United States of new China tariffs.<\/p>\n\n\n\n At the same time, the Chinese central bank said over the weekend that new bank lending fell more than expected in April and broad credit growth hit a record low.<\/p>\n\n\n\n Separate data on Saturday showed Chinese consumer prices rose in April while producer prices extended declines.<\/p>\n\n\n\n The central bank pledged to support economic recovery.<\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" The dollar consolidated against major peers on Monday as market participants awaited U.S. inflation data to assess the prospects of interest rate cuts this year. After a softer-than-expected U.S. payrolls report for April and seemingly dovish Federal Reserve policy announcement earlier this month, expectations have increased for rate reductions this year. Markets have priced in …<\/p>\n","protected":false},"author":9,"featured_media":94903,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,36],"tags":[6943,7987,6987],"class_list":["post-101141","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-market-updates","tag-bostic","tag-cpi-data","tag-inflation"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/101141","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=101141"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/101141\/revisions"}],"predecessor-version":[{"id":101142,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/101141\/revisions\/101142"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/94903"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=101141"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=101141"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=101141"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}