Dollar Recovers Slightly, CPI Becomes the Next Focus
The U.S. Dollar edged higher on Monday after previously falling to its lowest level in seven weeks. The Dollar Index (DXY) rose around 0.1% to 99.675 after touching a low of 99.403 on Friday.
The Greenback had come under pressure following a disappointing U.S. Nonfarm Payrolls report. Employment fell by 23,000 in July, although the unemployment rate also declined to 4.1%.
The weaker labor market data reduced expectations that the Federal Reserve would need to raise interest rates in the near term. This has limited the Dollar’s ability to stage a stronger recovery.
Investors are now turning their attention to U.S. inflation data due on Wednesday. The CPI report will be an important indicator of whether price pressures remain strong enough to push the Fed toward another rate hike.
Middle East tensions also remain in focus. Iran continues to demand major concessions before fully reopening the Strait of Hormuz, while the United Arab Emirates has reported an Iranian missile attack on one of its vessels.
Source : Newsmaker.id
