Currency market calm as US inflation data holds focus this week

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Inflation Expectations News

Market Participants,Rate Reductions,Inflation Data

Major currencies were steady on Monday with the dollar consolidating against peers, as market participants awaited U.S. inflation data to assess the...

Euro, Hong Kong dollar, U.S. dollar, Japanese yen, British pound and Chinese 100-yuan banknotes are seen in a picture illustrationTOKYO - Major currencies were steady on Monday with the dollar consolidating against peers, as market participants awaited U.S. inflation data to assess the prospects of interest rate cuts this year.

But comments by Fed officials last week were varied as speakers debated whether interest rates were high enough. A jump in consumers' inflation expectations, revealed in a survey on Friday, could further complicate the conversation."The rise in inflation expectations likely reflects stalling disinflation progress and will do little to help cool price pressures," wrote Westpac economists in a client note.

Fed Chair Jerome Powell will also make an appearance on Tuesday at a meeting of the Foreign Bankers' Association in Amsterdam. The dollar index, which measures the greenback against a basket of currencies, was mostly flat at 105.34, following its first weekly gain last week after two successive weeks of decline.The euro was unchanged at $1.0769 as the euro zone prepares for an inflation reading of its own on Friday.

While the market continues to be bearish on the Japanese currency, yen futures data from CFTC showed non-commercial short positions have fallen from 179,919 contracts on April 23, which was the most since June 2007.China's offshore yuan held steady around its lowest in a week at 7.2352. The former president also praised the "late, great" serial killer Hannibal Lecter during his rally in Wildwood, New JerseyFormer President Donald Trump could owe more than $100 million in taxes as a result of a yearslong Internal Revenue Service inquiry into claims of huge losses on his Chicago skyscraper, The New York Times and ProPublica reported Saturday.

 

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