Will the CPI Crash the USD?
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US dollar index is at 1-week minimum ahead of inflation report
On Wednesday, the key American currency was keeping to one-week minimums versus other crucial counterparts because market sentiment on the evergreen buck was still fragile ahead of the publication of long-awaited American inflation data.
Market participants were closely watching an approaching report on American consumer price inflation data just to make things clear as for how fast the key US bank is going to lift its interest rates in 2018.
The US dollar index traditionally utilized to gauge the greenback’s value versus a basket of six crucial currencies, headed south 0.19% being worth 89.43, thus demonstrating the lowest value since February 6.
The currency pair USD/JPY declined 0.55% making its way to a 15-month minimum of 107.24 in the face of mounting hopes that the Bank of Japan is going to do the same as the Federal Reserve as well as the European Central Bank had recently done to have their monetary policy normalized notwithstanding fresh remarks to the contrary by Japan’s major financial institution.
The safe-haven Swiss franc turned to be stronger – the currency pair USD/CHF inched down 0.15% showing an outcome of 0.9330.
Aside from that the common currency managed to climb up – the currency pair EUR/USD headed north 0.15% being worth 1.2371. At the same time the currency pair GBP/USD was intact, sticking to 1.3896.
As for the Australian and New Zealand dollars, they traded higher - AUD/USD gained 0.23% showing 0.7876, while NZD/USD rallied 0.56% hitting 0.7314.
On Wednesday, the Reserve Bank of New Zealand informed that inflation hopes managed to grow from 2% to 2.1% for the first quarter.
The Westpac consumer sentiment index in Australia went down 2.3% in February following a 1.8% jump in January.
In addition to this the currency pair USD/CAD inched down 0.16% trading at 1.2572.
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