The dollar is weaker against both currencies this morning ahead of this week’s inflation data releases. Core inflation YoY figures will be announced tomorrow in addition to Inflation Rate YoY. The annual core inflation rate hit a six-month low of 5.9% in July which was unchanged from the previous month (and below market forecasts of 6.1%). Markets are predicting the latest data to remain unchanged again with a forecast of 5.9%.
For the US annual inflation rate, figures are expected to decrease by 0.4% from 8.5% to 8.1% in the upcoming data, after having previously slowed more than expected to 8.5% in July of 2022 (from an over 40-year high of 9.1% hit in June).
For more on currencies and currency risk management strategies, please get in touch with your Smart Currency Business trader on 020 7898 0500 or your Private Client trader on 020 7898 0541.
