Dollar languishes as focus turns to CPI, Fed speakers
TLT•The dollar index edged 0.02% lower to 102.16 as traders awaited U.S. CPI data and Fed speeches. September inflation is expected to rise 0.6% month-on-month and 3.6% year-on-year; markets see a 77% chance the Fed will hold rates at its October meeting.
1. Dollar slips ahead of data
The dollar weakened after easing oil prices and investors reassessed the AI-fueled rally that had supported demand for U.S. assets. The dollar index fell 0.02% to 102.16, after dropping 0.35% on Tuesday. The euro rose 0.04% to $1.1203, while the yen was little changed at 158.32 per dollar.
2. Markets weigh Fed outlook
The U.S. Labor Department is due to release September CPI, expected to rise 0.6% from August and accelerate to 3.6% annually from 3.4%. The Fed is also due to publish its Beige Book, and policymakers are scheduled to speak. Traders see a 77% chance the Fed will leave rates unchanged at its October 27-28 meeting, up from 51% a month ago, and are pricing in about 75 basis points of tightening by late 2027.
