U.S. Core Inflation Data May Boost Dollar Value

According to Odaily, ING analyst Francesco Pesole has indicated in a report that the U.S. dollar could appreciate if upcoming data reveals that core inflation in December remains elevated. The market generally anticipates a month-on-month core inflation rate between 0.2% and 0.3%, with an average expectation of 0.25%. ING forecasts a 0.3% increase, which could heighten expectations for the Federal Reserve to adopt a cautious approach to interest rate cuts, thereby benefiting the dollar. Pesole noted that high inflation would concern investors about price pressures even before considering the potential impact of trade tariffs imposed by then-President-elect Trump.