1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Dollar edged lower ahead of US inflation data

Discussion in 'Forex Daily News & Outlook' started by prav, May 15, 2007.

  1. prav

    prav Moderator
    Staff Member

    Apr 28, 2007
    Likes Received:
    The Dollar edged lower against the Euro on Monday, ahead of US inflation data and a series of speeches from Federal Reserve officials that could yield clues on whether a cut in US interest rates is likely this year. The Euro was higher across the board, tracking a rise in Euro-zone Bond yields, which hit multiyear highs on a view that the European Central Bank will raise rates at least once more this year. Naming inflation as the main risk to the US economy suggests the Fed is more likely to keep its key interest rate at current 5.25%, to fight inflation before its cuts rates to spark economic growth. An unexpectedly strong report on New Zealand Retail Sales (1Q) renewed talk that the country's central bank may have to further raise interest rates to cool the economy.


Share This Page