Svmuu News: Lee Hardman, an analyst at Mitsubishi UFJ, said in a report that the U.S. dollar could weaken if data released on Tuesday shows that core inflation pressures in the U.S. remained moderate in June. He noted that the market will be closely watching for second-round effects of rising energy prices on core inflation.
He noted that core inflation has risen only slightly since the outbreak of the U.S.-Iran conflict. “If core inflation data remains moderate again, while energy inflation eases, market participants will likely scale back their expectations for further Fed rate hikes, thereby curbing the dollar’s strength over the coming week.” (Jin Shi)