Cheap buying activity The market awaits data on inflation in the United States
The U.S. dollar rose in the European market on Wednesday against a basket of major and minor currencies, consolidating above a 13-month low, thanks to cheap buying activity.
Throughout this week, investors are waiting for the release of important data on inflation levels in the United States, in order to re-price the existing possibilities of cutting interest rates to the Federal Reserve next month.
Price outlook • US Dollar Index Price Today: The dollar index rose by 0.45% to (101.00) points, from the opening level of today’s trading at (100.55) points, and recorded a low of (100.55).
The index ended Tuesday’s trading down by 0.3%, and recorded a 13-month low of 100.51 points, due to the renewed sell-off of the US currency.
According to CME Group’s FeedWatch: The pricing of the prospects of a 50 basis point cut in US interest rates at the September meeting is currently stable at 37%, and the pricing of the prospects of a cut by about 25 basis points at 63%.
In order to reprice these contracts, investors await the release of important economic data from the United States on GDP and personal consumption expenditures, the Federal Reserve’s preferred measure of inflation.
Forecast for the performance of the US dollar
We expect here at FX News Today: More negative economic data boosts the likelihood of a 50 basis point cut in US interest rates in September, which will lead to further negative pressure on US dollar levels.
Technical viewUS Dollar Index Price Loses Negative Momentum– Today’s Forecast 28-8-2024
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