After yesterday's negative dynamics the US dollar has posted some gains in the pairs with the main world currencies on Tuesday with the US inflation report on the horizon. The US authorities will announce inflation rates for February later in the day and the figures might somewhat clear up further perspectives of the interest rate revisions by the Federal Reserve in 2018.
The US Dollar index improved to 90.06 this morning, which is 0.19% up d-o-d.
The euro-to-US dollar exchange rate decreased to some 1.2325. Positive dynamics was also seen in the USD-JPY pair – 0.5% up to 106.94 (106.25 a day before).
Sterling has also trimmed gains vs the greenback by 0.08% to 1.3894.
The Australian dollar weakened against its American counterpart to 0.7866, though New Zealand currency somewhat rebounded to 0.7323.
Consumer price index is to be posted today, and the market expects it to confirm moderate-pace inflation growth despite the lower performance of labor market.
Market experts estimate that forecasts for possible 4-time revision of interest rates by the Federal Reserve instead of 3 times, will get additional support in case of increasing reports for February. At present insiders have already included in the price an upward revision of the interest rate at the next-week meeting.
However, the forecasts that the interest rate can be revised four times this year are restrained by weaker figures of February wage growth report even despite higher employment results.