The dollar remained close to the 10-day high recently reached after the latest US inflation data has shown an increase. In fact, the US Department of Labor Statistics reported that, on an annualized basis, the core CPI rose to 2.3% in June, matching analysts' forecasts and exceeding the 2.2% reading of the previous period. However, analysts point out that market concerns about rising trade tensions between the United States and China are limiting any potential gain.
As reported at 10:59 am (JST) in Tokyo, the USD / JPY pair traded at 112,658 yen, rising 0.12%; the pair has moved from 112,508 yen to 112,770 yen. The EUR / USD traded down to 1.1668, leaving 0.01%, while the GBP / USD was at 1.3185, down 0.13%.
Federal Reserve Policy in Focus
Thursday's economic data also helped to consolidate expectations that the Federal Reserve will continue its path of gradual adjustment of the policy, given the increase in inflationary pressures. On Friday, the Federal Reserve will present its semi-annual monetary report to the US Congress, which could offer additional clues about the way forward for the Federal Reserve.