Dollar Extends Gains Ahead of U.S. CPI

FxPremiere.com — Fx Signals – The dollar strengthened in early European trading Wednesday, extending recent gains ahead of U.S. inflation data which could influence Federal Reserve’s tapering thinking.

At 2:55 AM ET (0755 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded around 0.1% higher at 93.097, hitting its highest level since the start of April. Dollar Extends Gains Ahead of U.S. CPI

USD/JPY rose 0.1% to 110.67, the highest since mid July, EUR/USD was largely flat at 1.1717, near a four-month low, GBP/USD was 0.1% lower at 1.3830, near a two-week low, while the risk-sensitive AUD/USD fell 0.1% at 0.7340.

Dollar extends four-month high

The dollar has been on the rise of late, as improving U.S. labor data and a more hawkish tone from Federal Reserve policymakers have led markets to expect the central bank to begin tapering its asset purchases later this year.

Friday’s official U.S. jobs report impressed, with nonfarm payrolls rising by 943,000 in July and numbers for May and June also being revised higher.

Now the attention turns to the second leg of the Fed’s dual mandate, with the consumer price index for July due out from the Bureau of Labor Statistics at 8:30 AM ET (1230 GMT).

Daily Forex Signals

Analysts are looking for a gain in the headline figure of 5.3% over last year, marginally lower than June’s 5.4%, which was the biggest monthly gain since August 2008.

Sterling gains dollar on back foot

“Markets would hardly be surprised over a sizzling inflation report in July,” said analysts at Nordea, in a note. “We expect core inflation around 4.8%, likely unhinging Powell and expediting the talk about tapering as early as in September.”

Dollar Extends Gains Ahead of U.S. CPI

INFLATION IN THE FOREX MARKET

Subscribe to our Signals and start receiving Forex Day Trading Signals from the very next trade! Forex Signals Learning Guides below with guide you with every trade you make!

FxPremiere Group has helped over 5,000 Forex Affiliates earn up to $800 CPA on referrals and has grown immense revenue streams for online affiliates. Trading Forex has never been easy. The World of Forex Trading is growing day by day and its crucial to keep up to date with trends and market analysis. Here at FxPremiere Group we keep you updated with the Compare Forex Brokers charting system, as well as sending you Direct Forex Signals by our Telegram Services globally daily. Dollar Extends Gains Ahead of U.S. CPI

FX Signals

The most traded pairs of currencies in the world are called the Majors.EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, NZD/USD and USD/CAD, Gold, Oil and many many more… Forex Trading comes with it high risk. We help by referring only the very best forex brokers available in the marketplace. Your in safe hands with our partners.With our free forex learning guides you will be able to educate yourselves with the most up to date forex basics required in order to enter the Capital Markets. FxPremiere.com Learning centre is now available for all to read. With blog posts written monthly on the most common searched terms.