US Dollar May Rise Anew as Fed Outlook Firms After Inflation Data

TALKING POINTS – US DOLLAR, PPI, FED, BRITISH POUND, BREXIT

  • US Dollar rally may resume as Fed rate hike bets firm after inflation data
  • PPI statistics might set the tone, higher-profile CPI report due Thursday
  • British Pound could rise as EU’s Barnier stokes hopes for Brexit accord

The US Dollar pulled back alongside the anti-risk Japanese Yen while the sentiment-geared Australian and New Zealand Dollars traded broadly higher Asia Pacific trade. The move seems corrective following last week’s trend-defining upshift in Fed rate hike bets, reflecting protective pre-positioning before incoming US inflation data.

September’s PPI report is due today, with the core wholesale price growth rate expected to rebound to 2.5 percent on-year after sliding to a seven-month low of 2.3 percent in August. The higher-profile CPI gauge will follow Thursday and is expected to bring core inflation to 2.3 percent, up from 2.2 percent recorded in the prior month.

Leading PMI survey data reinforces the case for acceleration. Dramatically enough, it suggests that price growth in the service sector – by far the largest component of overall growth – rose to

Article source: https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2018/10/10/US-Dollar-May-Rise-Anew-as-Fed-Outlook-Firms-After-Inflation-Data.html