The US will release consumer price index (CPI) data at 15:30 MT time on July 14.
Consumer prices are the paramount factor in currency valuation. Traders closely watch CPI to predict further direction of the USD. The Federal Reserve’s policymakers attach great importance to CPI fluctuations while defining their interest rate. That’s why soft inflation data might divert the Fed’s officials from their plans to increase the federal funds rate one more time before the year-end. An upbeat release, on the contrary, may accord a solid support to the USD as investors will stop questioning the probability of additional rate hike in the upcoming months.