The dollar trades steadily: investors are cautious on the eve of the release of inflationary indicators

On Friday at the beginning of trading, foreign exchange market investors behaved cautiously, as today in the US will come out important inflation indicators.

Probably, these data will set the direction for the US dollar for the near future.

By the end of the trading week, the dollar lost its momentum against major currencies, especially against the yen. The Fed decided to slow down the tightening of monetary policy, although investors were counting on it, and this was what supported the currency. The release of economic indicators in the US, including basic inflation, retail sales and industrial production, will give investors a clearer picture of the Fed’s further actions regarding tightening of monetary policy this year. The dollar index remained at around 95.740, nevertheless, there is a probability of the week’s closing at 0.25% lower.


The NIKKEI index in Japan increased by 0.2%, now the growth rate for the week is approaching the 1.1% mark. The index of the Asia-Pacific region of MSCI rose 0.25% to a maximum of 2 years, and the markets expect to see a weekly growth of 3.3%. Hesitant comments by US politicians contributed to the growth of Asian stocks, and the dollar traded with negative dynamics. The ASX200 index, Australian S & P, rose 0.5% on Friday. Hang Seng closed 0.1% higher, and now the weekly growth of the index is 4%.

As for commodities, crude oil fell in price amid instability caused by the growth in supply and production volumes. Nevertheless, the losses were limited to a high level of imports to China in the first half of this year. Oil WTI fell by 0.2% to $ 45.98 per barrel. Brent crude fell 0.15%, and now the weekly growth rate is 3%.

Today, the most important reports and events are expected in the US, where the Basic Consumer Price Index, Retail Sales, Consumer Price Index and Retail Sales without fuel and cars will be released. All these indicators will be released at 12:30 GMT. Then, at 13:30 GMT, the speech of FOMC member Kaplan will be held.