Forex News: U.S. Dollar Drops Ahead Of Inflation Data

U.S. Dollar Drops Ahead Of Inflation Data

(RTTNews) - The U.S. dollar declined against its most major counterparts in the New York session on Monday, as investors focus on inflation data for more clues on the Federal Reserve's rate trajectory.

Reports on consumer and producer price inflation are due to be released on Wednesday and Thursday, respectively.

Friday's jobs data reinforced expectations that the Fed will cut interest rates again.

Markets are pricing in an 85 percent probability of a quarter-point rate cut later this month.

The monetary policy decisions from several central banks will be under the spotlight.

The European Central Bank is widely expected to deliver a quarter-point cut on Thursday.

The greenback edged down to 1.0594 against the euro, 1.2798 against the pound and 0.8758 against the franc, off its early 4-day highs of 1.0531, 1.2716 and 0.8804, respectively. The next possible support for the currency is seen around 1.08 against the euro, 1.29 against the pound and 0.86 against the franc.

The greenback declined to 1.4093 against the loonie and 0.5888 against the kiwi, from its early nearly 2-week highs of 1.4175 and 0.5804, respectively. The currency is seen finding support around 1.38 against the loonie and 0.60 against the kiwi.

The greenback fell to 0.6471 against the aussie, setting a 5-day low. The currency is likely to locate support around the 0.67 level.

In contrast, the greenback firmed to a 10-day high of 151.34 against the yen. If the currency rises further, it is likely to test resistance around the 154.00 region.

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