US Dollar Stabilizes Ahead of Upcoming Economic Data Releases
The US Dollar has stabilized ahead of next week's batch of US economic data. Major currency pairs are fluctuating within their narrow weekly ranges, with the USD experiencing a modest increase against several major currencies. The US Bureau of Labor Statistics reported that annual inflation in the US declined to 3.4% in July from 3.5% in June, meeting analysts' estimates.
Deutsche Bank notes that markets focused on the benign headline of the CPI print, with the probability of a September Fed hike slipping as a result. Despite this, Deutsche Bank's economists maintain their call for a Fed rate hike in September, though the CPI print together with last Friday's mixed jobs report reduce the urgency for imminent action.
On Thursday, the UK's Office for National Statistics reported that GDP expanded at an annual rate of 1.2% in the second quarter, slightly better than market expectations. However, Industrial Production and Manufacturing Production in the UK contracted by 0.2% and 0.5%, respectively, on a monthly basis in July.