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Forex - U.S. Dollar Inches Down After Inflation Data

Published 06/28/2019, 10:10 AM
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Investing.com - The U.S. dollar was slightly lower on Friday as investors waited for news from the G20 summit, while inflation data supported the Federal Reserve’s patient approach to interest rates.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, rose 0.1% to 95.790 by 11:11 AM ET (15:11 GMT).

Core inflation data rose in May, according to the Commerce Department. The data support the central bank taking a cautious approach to cutting rates, despite expectations among investors and pressure from President Donald Trump.

The chances of a rate cut at the Fed’s next meeting in July are still priced in at 100% according to Investing.com's Fed Rate Monitor Tool.

Meanwhile, the dollar was mostly flat against the safe-haven Japanese yen, with USD/JPY falling 3 cents to 107.73, as trade talks were in focus.

Chinese President Xi Jinping and Trump are expected to meet at 11:30 AM (2:30 GMT) local time in Osaka on Saturday (10:30 PM ET on Friday). The meeting is expected to give clarity on whether or not a trade deal can be made between the two largest economies in the world.

Elsewhere, the euro rose with EUR/USD up 0.1% to 1.1381, while GBP/USD gained 0.3% to 1.2710 and USD/CAD was flat at 1.3093 .

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