Dollar gains ahead of US CPI report
Written by
Daily Currency Update
Today marks the beginning of this week's key macroeconomic events, with US inflation data set to be released around lunchtime. The latest Consumer Price Index (CPI) is expected to rise slightly to 2.7% year-on-year, up from 2.6%. As usual, any deviation from expectations is likely to impact the dollar, with an above-forecast reading likely to strengthen the greenback, while a lower result could weaken it.Only a significantly higher-than-expected print is likely to deter the Federal Reserve from cutting interest rates at its December 18th policy meeting, where a 25-basis-point cut is currently anticipated by most analysts.
Key Movers
Today sees the start of this weeks top tier macro events with US inflation data scheduled for lunchtime. The latest Consumer Price Index is expected to tick up to 2.7% y/y from 2.6%. As usual any deviation should move the dollar with an overshoot likely to strengthen the greenback and vice versa if there is a miss. Only a large print higher than consensus will likely stop the Federal Reserve cutting interest rates at its December 18th policy decision, with a 25bp cut expected by most.Expected Ranges
- GBP/USD: 1.2685 - 1.2810 ▼
- GBP/EUR: 1.2075 - 1.2195 ▲
- GBP/AUD: 1.9930 - 2.0105 ▲
- EUR/USD: 1.0460 - 1.0590 ▼