Markets await U.S. inflation figures at 8:30 AM ET, with core CPI seen rising 0.2% month-over-month, shaping Fed rate cut expectations.
The U.S. dollar weakened against major currencies early Monday, with EURUSD up 0.03%, GBPUSD 0.15% higher, and USDJPY down 0.12%. The move comes as traders position ahead of the July CPI report, a key input for Federal Reserve policy decisions.
Headline CPI is expected to rise 0.1% month-over-month and 3.4% year-over-year, while core CPI is forecast at 0.2% m/m and 2.5% y/y. Lower energy prices may cap headline inflation, but sticky core readings could influence the Fed’s September meeting outlook. Goldman Sachs projects slightly softer figures than consensus, while BofA aligns with expectations.
The report’s outcome may sway market expectations for Fed rate cuts, with traders closely monitoring core inflation trends for signs of persistent price pressures or easing.