Currency Traders Await on Consumer Price Index (CPI) Figures

At the time of writing this report, U.S. Dollar Index used to gauge the dollar strength against a basket of major currencies inched up by 0.01% to trade at 90.142 index points.

USD bulls seem to be suffering from exhaustion based on the growing number of short sellers during the past week, even as some key monetary officials maintained that the world’s largest economy still has a long way full economic recovery with the Federal Reserve Bank likely to maintain their status quo by keeping their current dovish stance.

All eyes will be on the consumer price index (CPI) figures due in the coming days. Market watchers anticipate such data could influence the Federal Reserve Bank’s next move as it further tracks current price pressures. A weaker report could mean further declines for the safe-haven currency.

In addition, currency traders are also weighing on recent economic reports that reveal the U.S. economy might be nearing its peak while the rebound in Europe and other emerging markets might further add bearish pressures on the dollar.

Consequently, investors are monitoring the inflation rates at the world’s largest economy, as higher rates could trigger fiscal officials to curb asset purchases that bailed the United States economy from the turmoil caused by the worst viral attack in modern history.

Traders also have on their minds the massive balance sheet of the Federal Reserve Bank hitting records high with voices on tapering gaining momentum thus giving potential support to boost the greenback and U.S Treasury yields in the mid term while tarnishing Bitcoin and precious metals appeal.