Currency Note US Dollar

Will today’s key inflation data help the US dollar?

By Smart Currency October 22nd, 2014

The US dollar had a mixed day yesterday, with long term speculation continuing to weigh on the currency, while current events worldwide also impacted on the markets. With optimism over the US and worldwide economies declining, hopes of an earlier-than-expected interest rate rise stateside had been dampened with the expected time for this starting being pushed back. This meant that the dollar continued to decline yesterday against the higher yielding currencies such as the Australian and New Zealand dollars.

However, the dollar did advance against sterling and the euro, with the multi-nation currency weakening on its own worries. The only data of note from yesterday was the mildly influential existing home sales, which helped the dollar by coming in ahead of expectations. Today is an important one for US economic indicators, with the crucial inflation figure due. The Consumer Price Index (CPI) will be released early this afternoon and investors will look to this for any encouragement to support the dollar.