Dollar Holds Decline Ahead of CPI Report
The US Dollar Index hovered around 101.7 on Tuesday after weakening in the previous session, as investors awaited the October Consumer Price Index report, with both headline and core inflation expected to ease amid stabilizing energy prices. Richmond Fed President Tom Barkin said on Monday that the central bank should proceed “with care” when adjusting monetary policy, highlighting persistent inflation as its biggest concern. Markets are currently pricing in an 84% probability of a Fed rate hike in December, up considerably from around 74% a week earlier following last week’s stronger-than-expected employment data. Meanwhile, demand for the dollar as a safe-haven asset softened as oil prices continued to decline on growing optimism over a potential US-Iran peace agreement. President Donald Trump expressed confidence that the conflict in Iran was nearing an end following discussions with Qatar’s prime minister.
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The US Dollar Index hovered around 101.7 on Tuesday after weakening in the previous session, as investors awaited the October Consumer Price Index report, with both headline and core inflation expected to ease amid stabilizing energy prices. Richmond Fed President Tom Barkin said on Monday that the central bank should proceed “with care” when adjusting monetary policy, highlighting persistent inflation as its biggest concern. Markets are currently pricing in an 84% probability of a Fed rate hike in December, up considerably from around 74% a week earlier following last week’s stronger-than-expected employment data.
Meanwhile, demand for the dollar as a safe-haven asset softened as oil prices continued to decline on growing optimism over a potential US-Iran peace agreement. President Donald Trump expressed confidence that the conflict in Iran was nearing an end following discussions with Qatar’s prime minister.