US Dollar is falling in European trading hours before the US open bell.
The US Dollar Index falls below 104.00 and may ease further.
The US Dollar (USD) is falling ahead of the release of US inflation data on Tuesday. The day’s decline could reflect traders’ forecasts for another significant drop in US inflation. However, it is unclear whether the statistics would have an impact because investors may wait until Wednesday’s Federal Reserve (Fed) monetary policy meeting to take wagers.
Moreover Everyone’s attention is focused on the economy. according to the US Consumer Price Index (CPI). Expect significant swings if monthly inflation falls negative in November, which is unlikely given the seasonal influences of Black Friday, Thanksgiving, and the New Year.
Daily market movers CPI data may cause short-term US Dollar volatility.
All eyes will be on 13:30 GMT for the announcement of the November US Consumer Price Index:
Monthly headline inflation will rise from 0% to 0.1%.
Furthermore Core inflation is predicted to rise from 0.2% to 0.3% every month.
The annual rate of headline inflation is predicted to fall from 3.2% to 3.1%.
Annual core inflation is predicted to stay at 4%.
The US Treasury will hold a 30-year bond auction around 18:00 GMT.
Equities are in a holding trend ahead of the US CPI figures, with European and US shares seeking for direction.
According to the CME Group’s FedWatch Tool, markets are pricing in a 98.4% possibility that the Federal Reserve will hold interest rates steady at its meeting on Wednesday.
The benchmark 10-year US Treasury Note is now trading at around 4.19%.
