The dollar index held around 105 on Monday as investors remained cautious ahead of key U.S. inflation data due later this week, which could offer insight into the Federal Reserve's next policy moves.
Dollar unmoved before key inflation data
Markets are also eyeing upcoming remarks from Fed officials, with Chair Jerome Powell slated to speak on Thursday. Last week saw significant dollar volatility, ultimately ending higher, as concerns mounted over inflationary pressures and a rising debt load in the wake of Donald Trump’s election win. Although the Fed cut rates by 25 basis points, it provided limited guidance on the pace of future rate reductions.
Dollar keeps its leadership
Despite recent fluctuations, the dollar has largely retained its strength against most major currencies and is poised for further gains, particularly against the Chinese yuan and antipodean currencies, following China's underwhelming stimulus measures and weaker inflation data.
