Dollar nears two-week high before key U.S. data

Dollar holds near two-week high as market awaits key U.S. economic data

The dollar remains close to a two-week high as investors await key U.S. economic data that could impact future Federal Reserve rate decisions. Meanwhile, the euro, British pound, and yen see slight fluctuations ahead of major reports.

Dollar holds near two-week high as market awaits key U.S. economic data

The dollar edged higher on Tuesday, nearing a two-week high, as investors awaited key economic data, including Friday’s U.S. payrolls, which could impact the Federal Reserve’s upcoming interest rate decisions.

The euro fell 0.16% to $1.1055, while the British pound dropped 0.17% to $1.3124. Win Thin, global head of market strategy at Brown Brothers Harriman, noted that recent data indicates strong U.S. economic growth driven by robust consumption, despite gradual disinflation.

 

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The Fed’s preferred inflation measure, the PCE price index, rose 0.2% in July, in line with expectations, reinforcing expectations of gradual rate cuts. Market predictions suggest a total of 100 basis points in cuts this year.

Ten-year U.S. Treasury yields remained steady at 3.915%. The yen gained 0.3% to 146.50 per dollar, rebounding from a recent low. The Australian dollar fell 0.8% to $0.6737, and the New Zealand dollar slipped 0.75% to $0.61875, ahead of key economic data releases.

 

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