Forex — Dollar Stable versus Other Majors Ahead of U.S. inflation data

© Reuters. Dollar stable ahead of US inflation data — The dollar was steady against a basket of other major currencies on Thursday as investor, the expected data on the US consumer inflation later in the day for fresh clues on whether the Federal Reserve moves on interest rates this year.

The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 91.39 03:21 PM ET (07:21 GMT).

The index rose 1.14% so far this week, recovering from last week, more than two-year lows in the midst of a relief rally driven by reduced concerns about North Korea’s nuclear program and the economic impact of hurricane Irma.

Fresh hopes for the trump administrations plans for a tax overhaul helped support the dollar on Wednesday.

Meanwhile, data on Wednesday showed that, while U.S. producer prices in August remained some inflation pressure lukewarm, a potential obstacle for the Fed plans to raise interest rates.

The report on consumer prices later on Thursday will be closely watched as the Fed is examining whether to raise interest rates again before the years end.

The dollar dipped against the yen, with USD/JPY last at 110.36.

The euro was a touch higher, with EUR/USD at 1.1894, hold down on the last Friday of the two-and-a-half-year high of 1.2091.

Sterling edges higher, with GBP/USD 1.3222 in front of the Bank of England’s policy meeting later in the day.

The pound pulled-a-year highs against the dollar on Wednesday, according to the latest UK employment report showed that wage growth remained sluggish, adding to fears over a squeeze on the standard of living.

With inflation, pay growth exceeds the pressure on the cost of living is getting worse, which is likely to the BoE from raising interest rates to discourage.

The Australian dollar was higher numbers with AUD/USD up 0.24% at 0.8004, according to the domestic employees, but gains were kept in check by weak economic data from China, the country’s largest trading partner.

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