Dollar Steadies as Inflation Data Eyed
The dollar index held above 102 on Monday following four consecutive weeks of gains, as investors cautiously awaited key inflation reports due this week for fresh signals on the Federal Reserve’s next policy move. The September consumer and producer price indexes are scheduled for release on Wednesday and Thursday, respectively. A stronger-than-expected inflation reading could reignite the recent bond selloff by increasing pressure on the Fed to pursue a more aggressive tightening path. Markets are currently pricing in an approximately 83% chance that the Fed will leave interest rates unchanged this month, while the probability of a rate hike in December stands at around 86%. Meanwhile, oil prices declined on hopes that Russian diesel can ease global fuel shortages, reducing inflationary risks. President Trump said Moscow agreed to release diesel fuel to global markets, while claiming that Russia and Ukraine had agreed to an “energy ceasefire” that would take effect immediately.
The dollar index held above 102 on Monday following four consecutive weeks of gains, as investors cautiously awaited key inflation reports due this week for fresh signals on the Federal Reserve’s next policy move. The September consumer and producer price indexes are scheduled for release on Wednesday and Thursday, respectively. A stronger-than-expected inflation reading could reignite the recent bond selloff by increasing pressure on the Fed to pursue a more aggressive tightening path.
Markets are currently pricing in an approximately 83% chance that the Fed will leave interest rates unchanged this month, while the probability of a rate hike in December stands at around 86%. Meanwhile, oil prices declined on hopes that Russian diesel can ease global fuel shortages, reducing inflationary risks. President Trump said Moscow agreed to release diesel fuel to global markets, while claiming that Russia and Ukraine had agreed to an “energy ceasefire” that would take effect immediately.