Live Chat

Dollar consolidates against peers as traders wait for key US inflation report

Dollar remains steady ahead of US inflation report

The dollar remained steady against major currencies on Monday as markets awaited US inflation data that could influence the Federal Reserve's decision-making on potential rate cuts in 2024.

Following unexpectedly weak US labor market data and comments from the Federal Reserve ruling out interest rate hikes, traders have increasingly bet on monetary easing later this year.

Market predictions suggest an 80% probability of a Federal Reserve rate cut by the September meeting, with expectations for a total reduction of about 40 basis points in 2024, according to LSEG data cited by Reuters on Monday.

Markets.com Chief Market Analyst Neil Wilson weighed in on the upcoming reading in his morning note earlier today:

“The data for April will be crucial to how markets see the Fed progressing. Goods inflation is expected to decline a bit, but core services inflation will likely remain a little too hot for the Fed’s liking. CPI for April is seen at +0.3% month-on-month, ticking down to 3.4% YoY. Despite the resilience of US inflation, the message from the Fed remains one of easing to come – cuts are in the mail”.

Fed officials last week presented mixed opinions, debating whether the current interest rates were high enough to keep price rises at bay. A recent surge in consumer inflation expectations, noted in a Friday survey, could further complicate the conversation.

Choose your points of movement

Сalculate your hypothetical P/L (aggregated cost and charges) if you had opened a trade today.

Market

Shares Search
Shares
Index
Commodity
Bonds
Crypto
ETFs
Currency

Instrument

Search
Clear input
Occidental
Prosus N.V.
Porsche AG
Hermes
CAT
Thermo Fisher
Nikola Corporation
Tilray
Shell plc (LSE)
Skillz Inc
Iberdrola
DeltaAir
CrowdStrike Holdings
Golar LNG
Applied Materials
Snowflake
Royal Bank Canada
Amazon.com
Spotify
Exxon Mobil
CCB (Asia)
McDonald's
Campari
GameStop
Netflix
ON Semiconductor
Costco
Dave & Buster's
Delivery Hero SE
LUCID
Continental
Zoom Video Communications
Schlumberger
Virgin Galactic
Upwork Inc.
Cameco
JP Morgan
Fuelcell
Rivian Automotive
XPeng Inc
Wal-Mart Stores
Trade Desk
Blackstone
Vodafone
Aptiv PLC
L'Oreal
Target
Rio Tinto
Sartorius AG
British American Tobacco
Qorvo
ASOS
Cisco Systems
Nel ASA
Arista
Airbus
Apple
Pfizer
AMC Entertainment Holdings
ASML
Hubspot
Teladoc
Starbucks
SMCI
Canopy Growth
Wish.com Inc
Lockheed Martin
ProSiebenSat.1
IAG
AbbVie
Marston's
Baidu
Teleperformance
Norwegian Air Shuttle
Airbus Group SE
HSBC HK
Block
Annaly Capital
Abbott
LVMH
American Express
Novavax
GoPro
Siemens
Total
SIG
Pinterest Inc
Taiwan Semi
Etsy
Amgen
SONY
3D Systems
UPS
BlackBerry
Gen Digital Inc
Xiaomi
Quanta Services
Unity Software
NVIDIA
Anglo American
Palantir Technologies Inc
Fresnillo
Deere
Rolls-Royce
Porsche
Uber
Vir Biotechnology
American Airlines
ROBLOX Corp
Macy's
FirstRand
easyJet
DISNEY
Aurora Cannabis Inc
BP
Adidas
Boeing Co
Vonovia
Coca-Cola Co (NYSE)
Home Depot
General Electric
Coinbase Inc
ALIBABA HK
Philip Morris
General Motors
PayPal
UniCredit
II-VI
BASF
Kraft Heinz
Alphabet (Google)
Palo Alto Networks
Plug Power
Li Auto
Oracle
Roku Inc
UiPath Inc
Upstart Holdings Inc
F5 Networks
Infinera
Inditex
ZIM Integrated Shipping Services Ltd
Deutsche Bank
Hammerson
IBM
JD.com
Barrick Gold
Lemonade
MerckCo USA
Infosys
Invesco Mortgage
Comcast
Santander
Accenture
Anheuser-Busch Inbev
Visa
Mastercard
T-Mobile
SAP
Wayfair
Beyond Meat
Kuaishou
CarMax
Tesla
Lyft
Medtronic
Adobe
Morgan Stanley
Workday Inc
Blackrock
Vipshop
Meta (Formerly Facebook)
Linde PLC
Micron
Lululemon
Ceconomy
Chipotle
Gilead
Naspers
Bristol Myers
The Cheesecake Factory
Glencore plc
British American Tobacco
ChargePoint Holdings Inc
Twilio
Intel
Lloyds
CNOOC
Electrolux
Wells Fargo
Sea
PG&E
Fedex
Citigroup
Peloton Interactive Inc.
eBay
Microsoft
JnJ
Bilibili Inc
Trump Media & Technology Group
AIA
Nasdaq
Air France-KLM
Allianz
Lithium Americas Corp
Procter & Gamble
Qualcomm
AMD
New Oriental
MercadoLibre.com
Mondelez
Lumentum Holdings
Two Harbors Investment aration
AstraZeneca
Norwegian Cruise Line
Unilever
GoHealth
PepsiCo
Barclays
PETROCHINA
Goldman Sachs
Eli Lilly
HSBC
Cellnex
Berkshire Hathaway
Jumia Technologies
HDFC Bank
RTX Corp
Bayer
Bank of America
Chevron
ADT
DoorDash
Marriott
Nike
AT&T
GSX Techedu
Robinhood
Telecom Italia
Deliveroo Holdings
TUI
Freeport McMoRan
Toyota
BioNTech
Airbnb Inc
Alibaba
Verizon
Nio
Eni
Ford
Volkswagen
UnitedHealth
Shopify
China Life
Snap
Christian Dior
Conoco Phillips
Lufthansa
Tencent
Moderna Inc
Salesforce.com
Broadcom
Diageo
Toro
Cinemark

Account Type

Direction

Quantity

Amount must be equal or higher than

Amount should be less than

Amount should be a multiple of the minimum lots increment

USD Down
$-

Value

$-

Commission

$-

Spread

-

Leverage

-

Conversion Fee

$-

Required Margin

$-

Overnight Swaps

$-
Start Trading

Past performance is not a reliable indicator of future results.

All positions on instruments denominated in a currency that is different from your account currency, will be subject to a conversion fee at the position exit as well.

PPI on Tuesday to be followed by Wednesday’s US inflation print

Investors, noting a slight deceleration in the US economy from the strong growth in 2023, are keen to confirm how sticky US inflation is — and how the April reading will affect Fed policy going forward. Opportunities to assess this will come this week with the release of the U.S. producer price index (PPI) on Tuesday and the consumer price index (CPI) on Wednesday.

ING FX analyst Francesco Pesole told Reuters:

"CPI is such a big, polarising event for the whole market. It's a possibility going into the event for the market to hold dollars given the recent tendency for inflation data to surprise to the upside”.

The dollar index (DXY), which tracks the US currency against a basket of six major peers, recorded a minimal change at 105.18, dipping by 0.11% at the time of writing at 12:10 GMT on May 13.

The euro saw a minor increase to $1.0780, while the British pound rose slightly to $1.2537 ahead of Tuesday's labour market data.

Markets suspect yen intervention as JPY surges vs. USD on Monday

Japanese yen jitters

Attention also remains on the Japanese yen, particularly with ongoing concerns about potential currency intervention by Japanese authorities, as markets prepare for the US inflation data release this week.

ING’s Francesco Pesole added:

"There's a chance that if we see another strong US CPI print that Japan will need to deploy another big amount for FX intervention”.

After a significant 3% drop earlier in the month, USD has rebounded slightly against JPY following two instances of suspected market intervention by Japan to strengthen its currency, causing temporary caution among short-sellers in the Japanese yen.

Reuters cited CFTC data showing a significant drop in non-commercial short positions against the yen, reaching levels not seen since June 2007.

At the time of writing, USD to JPY traded around 155.84, with the dollar approaching its recent high of 155.965 yen.

Earlier today, the yen received brief support after the Bank of Japan made a hawkish move by reducing the amount offered for a segment of Japanese government bonds during the morning trading session in Asia.


When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.

Latest news

Wednesday, 30 October 2024

Indices

Robinhood stock price climbs 4% after debuting presidential election betting

Wednesday, 30 October 2024

Indices

Warren Buffett Sold $80 Billion of Apple Stock (AAPL)

Euro stock market

Wednesday, 30 October 2024

Indices

Europe’s Budget Worries, US Tech Earnings, and China’s Growth Signals

Wednesday, 30 October 2024

Indices

Gold price hits record high on US election uncertainty, geopolitical risks

Live Chat