US dollar weakens ahead of US inflation report

7/11/2024 2:42:07 AM

(MENAFN) According to a report from a UK news agency, market activity on Thursday showed slight declines, characterized by cautious trading sentiments. Investors were particularly attentive as they awaited the release of a key US inflation report scheduled for later in the day.

Meanwhile, the British pound strengthened, reaching a one-month high of USD1.28545 during early Asian trading. This upward movement was driven by diminishing expectations that the bank of England would implement interest rate cuts in August. The pound had already gained 0.48 percent in the previous session following statements from Bank of England officials that tempered market expectations of imminent monetary easing.

Conversely, the US dollar experienced a decline as investors exercised caution ahead of the anticipated inflation data release. The euro, on the other hand, saw a modest increase of 0.04 percent against the dollar, reaching USD1.0834, while the Australian dollar edged up by 0.01 percent to USD0.6754. The dollar index, which measures the greenback against a basket of major currencies, remained relatively stable at 104.95.

Looking ahead, expectations for core inflation in the United States point to a month-on-month increase of 0.2 percent in June, which would result in an annual rate of 3.4 percent. Federal Reserve Chairman Jerome Powell's remarks on Wednesday indicated a cautious approach to interest rate adjustments, emphasizing the Fed's commitment to making decisions based on economic data rather than political considerations.

In currency markets, the New Zealand dollar recovered some ground, rising by 0.11 percent to USD0.60885. This followed a previous session where it had experienced a 0.7 percent decline.

Overall, the day's market movements reflected a mix of cautious trading ahead of key economic indicators and nuanced shifts in currency valuations influenced by central bank policies and global economic dynamics.
=

MENAFN11072024000045015839ID1108430352

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.