US Dollar Hangs in Balance Ahead of Crucial CPI Report

The US Dollar is holding onto recent gains due to risk aversion and a modestly hawkish Federal Reserve repricing following the August Producer Price Index (PPI).

Brown Brothers Harriman's Elias Haddad notes that despite this, the upcoming August Consumer Price Index (CPI) report will be crucial in determining next week's Fed decision.

A hot CPI print would essentially seal a September hike and support the Dollar, while a cool reading would strengthen the case for a hold and potentially lead to dovish repricing, which could send the USD lower.