Mitsubishi UFJ: Upcoming U.S. inflation data may curb dollar strength

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

He added that core inflation has only risen slightly since the outbreak of the U.S.-Iran conflict. "If core inflation data remains moderate again while energy inflation eases, market participants are likely to lower their expectations for further Fed rate hikes, thereby curbing dollar strength in the coming week." (Jin Shi)