Dollar still unmoved as investors anticipate inflation figures in the stateside which will likely weigh on the currency

US Dollar

The U.S. dollar was unmoved versus a basket of currencies on Friday’s open. Investors are keeping an eye on the inflation figures in the country which will be released on the same day. The data is widely believed to weigh on the greenback’s future movement.

The index which tracks the value of the dollar against its major opposing currencies, the U.S. dollar index, traded near the flat line on the day as it was expected to finish the session down by 0.25 percent at 95.766. However, it is marginally higher against the Japanese yen at 113.425 yen.

The previous boost of the U.S. dollar versus the Japanese yen seemed to be postponed in the course of the week. Losses were somehow limited by the comments of U.S. Federal Reserve Chair Janet Yellen. Indications of a pickup inflation in the stateside is likely to support expectations that the Fed will incite another rate hike this 2017. This movement will further reinforce the greenback and Treasury yields.

The core consumer price index (CPI) is projected to only advance by 1.7 percent in June following a similar rise last May. However, the CPI is expected to edge up about 0.2 percent after its rise last month by 0.1 percent, judging on a month-on-month basis.

The euro was also flat as it struggled to start on a positive note due to Germany’s 10-year bond yield jump more than 0.50 percent overnight. This is after a released report suggesting that the European Central bank (ECB) is possibly signalling a gradual wind down on its asset purchase program this coming September.

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