Dollar Rises Before Inflation Data
(RTTNews) - The U.S. dollar firmed against its major counterparts on Monday with traders awaiting U.S. consumer price inflation data due later in the week, and betting on hopes the Fed will not cut interest rate by more than 25 basis points next week.
The U.S. Labor Department's data on consumer price index is due early Wednesday, and the producer price index will be out before Thursday's open.
CME Group's FedWatch Tool is currently indicating a 75.0 percent chance the Fed will lower rates by 25 basis points and a 25.0 percent chance of a 50 basis point rate cut.
The European Central Bank, which is scheduled to announce its interest rate decision this week, is widely expected to cut rates by 25 basis points.
The dollar index climbed to 101.70 in the European session, and despite paring some gains subsequently, edged up to 101.64 again, gaining nearly 0.5%.
Against the Euro, the dollar firmed to 1.1035 from 1.1086. Against Pound Sterling, the dollar strengthened to 1.3072 from the previous close of 1.3132.
The dollar firmed against the Japanese currency, fetching 143.17 yen a unit, gaining from 142.31 yen. The dollar gained marginally against the Aussie at 0.6661.
Against Swiss franc, the greenback climbed to CHF 0.8494, and remained little changed against the Loonie at 1.3559.
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