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The dollar edged down but remained high on CPI figures

13 Oct,2023
The dollar edged down but remained high on CPI figures

The greenback slipped saw a further slip on Friday, but it stayed close to the high levels of the earlier session, as the stick inflation figures awoken the possibilities that Fed may take more hawkish stance with rate hikes.

The dollar index that gauges the greenback versus its major pairs edged down by 0.1% at 106.22, just below Thursday’s peak at 106.60.

Headline According to data released on Thursday, the United States' consumer prices increased faster than expected in September, potentially complicating the Federal Reserve's next policy decisions intended to rein in rising inflation.

The consumer price index increased by 3.7% annually, which is the same rate as in August, and by a higher-than-expected 0.4% month-over-month increase. 3.6% and 0.3% were the readings that economists had predicted.

The likelihood of a rate increase in December has increased from 28% to roughly 40% in the markets after the release of the report.

EUR/USD climbed by 0.1% to 1.0537, post a massive dip in the earlier session, with more inflation figures realising in the eurozone.

 

GBP/USD ticked up by 0.2% to 1.2193.

 

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