Commerzbank Sees Soft July US Inflation as Dollar Risks Loom
Commerzbank analyst Antje Praefcke expects July US inflation to rise just 0.1% month-on-month, with annual headline and core rates slipping to 3.4% and 2.5%. The dollar also faces geopolitical risks from the Middle East.
Commerzbank FX analyst Antje Praefcke notes that US inflation data for July is forecast to show only a 0.1% month-on-month increase. As a result, the annual headline rate could ease to 3.4% while the core measure may decline to 2.5%.
Softer price pressures could weigh on the dollar by reinforcing expectations that the Federal Reserve is near the end of its hiking cycle. At the same time, escalating Middle East tensions are adding a layer of uncertainty that may further dampen appetite for the greenback.
Source: FXStreet Forex News