Title: Dollar Edges Higher; Inflation Data To Cement Early Fed Hikes
Jan 10, 2022 02:51AM ET
The US dollar edged higher in early European exchanging on Monday as merchants expected the arrival of key US expansion information this week to build the chances of a Federal Reserve rate climb soon.
At 2:55 a.m. ET (0755 GMT), the dollar record, which estimates the worth of the US cash against a bin of six different monetary forms, was 0.2 percent higher at 95.915.
The risk-sensitive USD/JPY rose 0.2% to 115.78, near last week's five-year high of 116.35; the EUR/USD fell 0.2% to 1.1332, the GBP/USD rose to 1.3588 and the risk-sensitive AUD/USD climbed 0.2% to 0.7195.
The dollar is recovering from its blow on Friday after the weaker-than-expected US jobs report for December and is now turning its attention to the release of key inflation data for December.
Consumer price inflation is expected to top 7% year-on-year on Wednesday, approaching a four-year high, while producer price inflation is also expected to jump the following day.
Fed Chair Jerome Powell and Governor Lael Brainard will testify before Senate committees this week on their nominations as Fed Chair and Vice-Chair, respectively.
Their remarks on possible monetary tightening by the central bank this year will be closely watched and represent the culmination of a week that will feature numerous Fed speakers.
Also helping the dollar on Monday were ongoing tensions between the US and Russia, particularly over the former Soviet state's intentions towards Ukraine.
Talks between the two main players began in Geneva on Monday before moving on to Brussels and Vienna. However, Russia, however, said on Sunday that it would not make any concessions under US pressure and warned that the negotiations could end prematurely.