© Reuters. The U.S. dollar index rebounded from a one-week low, the CPI data of China and the United States affected the market nerves this week
Investing.com – In the European morning session on Monday (7th), the U.S. dollar index strengthened. After the U.S. non-farm payrolls report was released last Friday (4th), the focus turned to inflation data from the world’s two largest economies.
As of 17:16 Beijing time (05:16 am ET), the dollar, which measures the trend of the dollar against six major currencies on a trade-weighted basis, was up 0.28% at 102.123; it was up 0.28% at 102.30 after falling to a low of 101.73 on Friday .
The benchmark U.S. Treasury yield was at 4.096%, at 4.415%.
Dollar rebounds, key inflation aheaddata
The dollar fell to a one-week low against a basket of currencies after U.S. data for July showed weaker-than-expected data on Friday.
However, the employment report also showed steady as well as a decline, suggesting that the labor market remains tight and inflationary pressures remain.
With the Fed’s focus on economic data ahead of its September policy meeting, the focus turns to Thursday’s.
If inflation falls, policy makers may hold off on raising interest rates in September after raising rates by 25 basis points in July, although a rate cut remains far off given that July is still expected to be as high as 4.7%.
RMBweakened，China will also be released this weekinflationdata
It rose 0.67% to 7.189; rose 0.22% to 7.1974. 2.670%.
The yuan traded lower as China’s inflation data due on Tuesday could show CPI falling to -0.5% on an annualized basis, and could remain negative.
In addition, investors will need to watch for further clues on how China will stimulate economic growth.
german industryEuro tumbles as output slumps
It fell 0.33% to 1.0974. Earlier, German industrial output fell 1.5% month-on-month in June, far below last month’s revised 0.1% decline.
On the other hand, the European Central Bank raised interest rates earlier this month, but weakness in Germany, the euro zone’s largest economy, may prompt ECB policymakers to pause the tightening cycle in September.
UK house prices fall again
It fell 0.13% to 1.2732. Previously, data from the loan servicer Halifax showed that house prices in the UK fell for the fourth consecutive month in July, down by about 0.3% and 2.4% year-on-year.
The UK will release second-quarter GDP data on Friday (11), and the economy is expected to grow slightly, indicating that the overall economy remains stagnant.
Elsewhere, it rose 0.35 percent to 142.24, despite warnings from Bank of Japan members that inflation may exceed expectations this year.
[This article is from Yingwei Caiqing Investing.com, to read more, please log in to cn.investing.com or download Yingwei Caiqing App]
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Compiler: Liu Chuan
2023-08-07 09:21:00
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