Forex – U.S. Dollar Steady After Inflation Data

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Investing.com – The dollar remained near a 10-week high on Monday as the Federal Reserve’s preferred inflation measure rose, increasing chances of a rate increase.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, rose 0.27% to 96.62 as of 11:14 AM ET (15:14 GMT).

The Fed’s preferred inflation measure, the personal consumption expenditures (PCE) price index, rose 0.2% in September. The data bolsters expectations that the central bank will raise rates in December.

Chances of a rate hike were priced in at 77.1%, according to Investing.com’s Fed Rate Monitor Tool.

The dollar rose against the Japanese yen, with USD/JPY gaining 0.48% to 112.44. The Canadian dollar was lower, with USD/CAD up 0.14% to 1.3124.

The euro fell amid ongoing political tensions between Italy and the European Commision and news that German Chancellor Angela Merkel will not seek re-electionas the chair of the Christian Democratic Union (CDU) party. Merkel’s coalition party suffered a setback in regional German elections on Sunday.

EUR/USD fell 0.19% to 1.1380, not far from a session low of 1.1366.

Read more at : https://www.investing.com/news/forex-news/forex–us-dollar-steady-after-inflation-data-1664001

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