US Dollar holds steady ahead of inflation data as Aussie, Yuan get boost
The US dollar hardly moved against the euro, yen, and pound on Tuesday ahead of US inflation data, while the Australian dollar and Chinese Yuan stepped up following favorable numbers from Beijing.
The prospect of US stimulus withdrawal which had been brought by a surprise shift in the tone of the Federal Reserve has bolstered the dollar in the previous weeks in spite of a rise in COVID-19 cases in many parts of the world.
With the US consumer price inflation anticipated to fuel the debate, the dollar remained almost unmoving against the euro at $1.1856 following its over 2% gain versus the common currency over the previous month.
Top European Central Bank policymakers announced on Monday that the bank would remain supportive and is preparing new “forward guidance” for the coming week to take into account a newly-tweaked 2% inflation target.
“We expect another firm CPI in both the core and headline,” Royal Bank of Canada’s Global Head of FX Strategy stated.