Dollar Index awaits potential US inflation catalyst   

11 June 2019 : With Dollar traders having moved past the disappointing headlines out of May’s US jobs report, the next near-term catalyst for the Greenback could arrive on Wednesday morning, with the release of last month’s Consumer Price Index.

Should the May inflation data continue to keep its distance from the Fed’s two percent target, the calls for US monetary policy easing could grow louder, with markets already expecting a Fed rate cut to be a near-certainty this year. As long as the chances of a Fed rate cut remain on the table, that creates a suppressive environment for the US Dollar, which in turn should allow for some breathing space for global currencies.

Reporting for EasyKobo on Tuesday , 11 June 2019 in Lagos, Nigeria

Source:Lukman Otunuga, FXTM Research Analyst

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