Description

US dol­lar rises in expect­a­tion of rel­at­ively benign infla­tion data

▸ S&P 500 flat and Nasaq slightly higher as investors await signs of tar­iff effects

▸ European stocks slip ahead of Trump and Putin’s meet­ing to dis­cuss Ukraine

The US dol­lar climbed yes­ter­day as investors waited for infla­tion and other data this week that could offer cru­cial clues about the Fed­eral Reserve's plans to cut interest rates. The cur­rency was 0.5 per cent higher against a bas­ket of peers by early after­noon in New York, curb­ing a recent decline sparked by weaker than expec­ted US jobs data.

Infla­tion fig­ures due today are expec­ted to show a 3 per cent annual rise in con­sumer prices, a rate unlikely to dent expect­a­tions that the Fed will lower bor­row­ing costs for the first time since Decem­ber next month.

Last month's dis­ap­point­ing labour mar­ket report has caused mar­kets to price in a 90 per cent chance of a quarter­point cut at the Septem­ber meet­ing, but some investors are wait­ing to see how the infla­tion pic­ture looks. Later in the week, retail sales, pro­du­cer price index fig­ures, job­less claims and the Uni­versity of Michigan con­sumer sen­ti­ment sur­vey will all offer more data points for investors.