USD settled on Thursday in a limited range of trading near a two-week low against a basket of currencies as investment demand fell on the greenback as the best alternative investment after news of new US-China trade talks. Building new positions, as important US data on key annual and monthly inflation levels provide strong evidence that US interest rates may rise two more times this year.
USD index is trading at 94.82 points, or 94.78 points, at 94.88 points and 94.74 points.
The index ended yesterday’s trading down 0.25%, its third consecutive daily loss, hitting a two-week low of 94.69 points, after weak data from the US, as well as fears of worsening trade disputes between the United States and China.
The data showed that US producer prices unexpectedly contracted in August for the first time in 2018, a negative sign of the country’s key inflation levels, as producer prices are a leading indicator.
US President Donald Trump’s administration has called on Chinese officials to resume trade talks between the two countries, boosting hopes of resolving trade disputes between the world’s biggest economies and signaling the possibility of postponing additional customs duties to the world, the White House chief economic adviser Larry Fox told Fox Business. Chinese imports worth $ 200 billion.
Investors are looking for important data from the US on key consumer price inflation levels in August, which provides new evidence of the possibility of a two-time hike in US interest rates this year.
By 12:30 GMT, the consumer price index is expected to rise by 2.8% y / y in August from 2.9% in July and the expected monthly reading by 0.3% from a 0.2% increase in the previous reading.