Investors Beware! US Inflation Data Becomes the Focus - Kakiforex.com - Financial Market Media No. 1 in the World Investors Beware! US Inflation Data Becomes the Focus Investors Beware! US Inflation Data Becomes the Focus
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August 11, 2021

Investors Beware! US Inflation Data Becomes the Focus

 The currency moved cautiously ahead of the release of US inflation data tonight, with the greenback dollar trading higher against its main rivals.


The dollar index, which measures the strength of the greenback against a basket of major currencies, rose to a three -week high of 93.10.


10-year U.S. treasury yields rose to their highest level since mid-July after the U.S. Senate passed a massive infrastructure bill, helping strengthen the U.S. dollar.


The Democrat-run U.S. Senate passed a $ 1 trillion bipartisan infrastructure bill on Tuesday, and immediately began a debate on U.S. President Joe Biden’s proposed $ 3.5 trillion spending plan.



The release of US inflation data tonight will be the main focus of the market, which is expected to show slower growth in July than the previous reading.


Federal Reserve (Fed) policymaker Charles Evans says the current surge in inflation should not push central banks to tighten monetary policy ahead of time, and more jobs data needs to be seen before there is a change.


The statement, however, failed to dampen the rising demand for the US dollar after witnessing a very encouraging reading of NFP employment data in July.


At the same time, market sentiment was also affected by concerns over the growing contagion of Covid-19, which saw an increase in cases in Asian countries as well as the US.


This caused the movement of major currencies to be limited and move around the same price after being pushed down by the strong US dollar.