The US Dollar Index (DXY) has remained steady at around 100.50 after a five-day decline. The United States Consumer Price Index (CPI) has softened, reducing concerns about a potential recession. The US Producer Price Index (PPI) data will be closely monitored on Thursday.
Regarding interest rate guidance, Commerzbank economists noted that inflationary pressures in the US are decreasing. In June, consumer prices increased by only 0.2% from the previous month. The core rate, which is a significant measure of the underlying trend and excludes energy and food, also increased by only 0.2%. This is the smallest increase since February 2021. Although the Fed is expected to raise interest rates at the end of the month, the data supports the idea that this will be the final hike.
Regarding interest rate guidance, Commerzbank economists noted that inflationary pressures in the US are decreasing. In June, consumer prices increased by only 0.2% from the previous month. The core rate, which is a significant measure of the underlying trend and excludes energy and food, also increased by only 0.2%. This is the smallest increase since February 2021. Although the Fed is expected to raise interest rates at the end of the month, the data supports the idea that this will be the final hike.
