Mitsubishi UFJ: Upcoming US inflation data may curb USD strength

Odaily Odaily reports that Mitsubishi UFJ analyst Lee Hardman stated in a report that if Tuesday's data shows US core inflation pressures remained moderate in June, the dollar could weaken. He noted that the market will closely watch for second-round effects on core inflation from rising energy prices.

He indicated that since the outbreak of the US-Iran conflict, core inflation has only risen slightly. "If core inflation data remains moderate again, coupled with some easing in energy inflation, market participants are likely to lower their expectations for further Federal Reserve rate hikes, thereby curbing USD strength over the coming week." (Jin Shi)