The U.S. dollar remained stable as markets awaited two key inflation reports, which may help determine the extent of interest rate cuts by the U.S. Federal Reserve next week and beyond.
Following last week’s weak jobs report, which strengthened expectations of a rate cut by the Federal Reserve at its meeting scheduled for September 16–17, the only question for investors is whether the cut will be 25 basis points or 50 basis points. This will largely depend on the impact of tariffs on prices in the world’s largest economy.
Producer Price Index data in the U.S. is due today (Wednesday), followed by Consumer Price Index data tomorrow (Thursday).
