FX.co ★ Dollar Steady Ahead of CPI Report

The dollar index steadied around 98.5 on Tuesday, following notable volatility in the previous session, as market participants awaited upcoming US consumer inflation metrics. These figures have the potential to impact the Federal Reserve's stance on interest rates. Expectations for the July Consumer Price Index (CPI) anticipate a 0.2% increase, just below June's 0.3% rise, while the annual rate is forecasted to climb for the third consecutive month to 2.8%. Similarly, the core CPI is projected to increase by 0.3%. Despite indications of sustained inflation levels, the markets are still predicting a nearly 90% likelihood of a Fed rate cut in September. On international trade matters, President Donald Trump has extended the US-China trade truce by an additional 90 days to facilitate ongoing negotiations. Additionally, investors are focused on the forthcoming meeting scheduled for Friday between Trump and Russian President Vladimir Putin, aimed at addressing the conflict in Ukraine.