Dollar Pulls Back as Traders Focus on CPI Data
The U.S. dollar pulled back from session highs as traders focused on the CPI data released earlier in the day.
The report indicated that inflation rate remained unchanged at 3.4% in August, in line with analyst estimates, while core inflation rate decreased from 2.5% in July to 2.4% in August.
Traders also took note of the strong pullback in oil markets, which is bearish for the U.S. dollar.
The EUR/USD currency pair remained stuck near the 1.1600 level as traders evaluated chances for a rate hike at the next Fed meeting, with the probability of a rate hike increasing to 86.7% according to the FedWatch Tool.
The GBP/USD currency pair moved higher as UK GDP exceeded analyst estimates, while the USD/CAD gained ground despite the rebound in precious metals markets.