10.09.202502:07:43UTC+00Dollar Steadies Ahead of Inflation Data

The dollar index hovered around 97.8 on Wednesday, following its increase in the previous session, as investors anticipated crucial inflation reports that could impact the Federal Reserve's policy decisions. Scheduled later today is the release of the producer price index, with the consumer price index set to follow on Thursday. On Tuesday, the Bureau of Labor Statistics announced a potential revision, indicating the economy may have generated 911,000 fewer jobs over the 12 months ending in March, translating to about 76,000 fewer jobs each month. This suggests a softer labor market than initially projected. Coupled with last week's disappointing August jobs report, this information has heightened expectations for a 25 basis point reduction in the Fed's rate at next week's meeting. Some traders are even bracing for a more substantial 50 basis point cut. Overall, the market is factoring in a total of 66 basis points of monetary easing for the year.