US Dollar Stabilizes Ahead of Key Economic Indicators

The US Dollar (USD) Index registered small losses on Wednesday before entering a consolidation phase at around 100.00 early Thursday.

The key economic indicators for the day include weekly Initial Jobless Claims and Producer Price Index (PPI) data for July, which will be featured in the US economic calendar.

Inflation in the US, as measured by the change in the Consumer Price Index (CPI), declined to 3.4% in July from 3.5% in June.

The core CPI, which excludes volatile food and energy prices, increased by 0.2% and 2.5% on a monthly and yearly basis, respectively.

Analysts at Deutsche Bank note that, “for the most part, markets focused on the benign headline of the CPI print,” with the probability of a September Fed hike slipping as a result.