Title: Dollar Static Ahead of Key CPI Release; Sterling Flat After GDP Data
Dec 10, 2021 02:57AM ET
The dollar was broadly unchanged in early European trade on Friday ahead of the release of key US inflation data that could influence the Federal Reserve's monetary policy deliberations in the new year.
At 2:55 AM ET (0755 GMT), the dollar index, which tracks the greenback against a basket of six other currencies, was unchanged at 96.263, heading for its seventh straight weekly gain.
The USD/JPY increased by 0.1% to 113.59, the EUR/USD decreased by 0.1% to 1.1288, and the risk-sensitive AUD/USD increased by 0.1% to 0.7151.
GBP/USD was unchanged at 1.3222, even after data showed the UK economy grew less than forecast in October, as traders kept their powder dry ahead of the release of US inflation data.
The release of consumer prices in the United States is scheduled for 8:30 a.m. ET (1330 GMT), with economists expecting a monthly increase of 0.7 percent, which would translate into an annual price rise of 6.8 percent, the biggest year-on-year increase since 1980.
The release is seen as a prelude to next week's Federal Reserve meeting, and expectations are high that the central bank will announce a faster reduction in its bond-buying program, hinting at a rate hike soon, especially after Chairman Jerome Powell's recent testimony to Congress.
When referring to high inflation in the US, Powell stated that it was time to remove the term "temporary" when referring to high inflation in the US and also hinted that it would be appropriate to consider ending net asset purchases a few months earlier than previously planned.