Investors await US inflation figures expected to show a slower annual pace, potentially reducing Fed rate-hike bets.
The US Dollar Index (DXY) remains nearly flat below the 100.00 mark as markets brace for the July Consumer Price Index (CPI) report. The annual reading is anticipated to decline from June’s level, easing expectations for further Federal Reserve rate hikes and pressuring the USD.
Wall Street’s decline on Tuesday added downward pressure on the Greenback. The US Dollar showed mixed performance against major currencies, strengthening against the Swiss Franc but weakening versus the Canadian Dollar amid higher oil prices. EUR/USD and USD/JPY traded sideways, awaiting fresh catalysts.
Gold prices dipped near a two-month high of $4,400, while AUD/USD held around 0.7060 after the Reserve Bank of Australia kept rates unchanged at 4.35%. USD/CAD fell to a two-month low as the CAD gained support from rising oil prices.