US: Inflation figures may manage to slow the Dollar's downward trend – Commerzbank
|In the US, the December inflation figures will be released on Thursday. Economists at Commerzbank analyze how the CPI report could impact the Dollar.
Dollar will quickly be back in the penalty box on weak numbers
Those hoping for a clearer signal of an imminent rate cut from the Fed after the jobs report will likely be disappointed. Yes, inflation in the US continues to fall. But not very fast, according to our experts. An increase of around 0.25% MoM for both the headline and core rate does not indicate a rapid decline in inflation. According to our experts, the headline rate could even rise slightly to 3.2% YoY in December. The core rate is likely to remain uncomfortably high at 3.8%.
Perhaps the inflation figures will manage to slow the Dollar's downward trend. But I am afraid that the Dollar will quickly be back in the penalty box on weak numbers.
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