Monday June 12, 2006 - 23:35:41 GMT
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Tricom Futures and Foreign Exchange -
Forex: Will the CPI Data back-up Bernanke's Claims?
The dollar rose versus its rivals Monday, with market participants focused on the May inflation data to be released later this week. The dollar scored the bulk of its gains in the overnight session as the market continued to wash out dollar negative positions. During New York trade, the greenback traded within tight ranges as investors awaited more concrete evidence of inflationary pressures. The dollar shrugged off host of speeches by Federal Reserve officials, including Cleveland Fed President Sandra Pianalto and Governors Mark Olson and Susan Bies. Fed Chairman Ben Bernanke is scheduled to speak Monday evening (US time).
With little data to move markets, investors see Tuesday's producer price index, which measures wholesale inflation, and Wednesday's consumer price index as crucial to currency markets to see if inflation pressures are intensifying. Tuesday's PPI figure is expected to show a 0.4% increase in producer prices for the month of May, from a 0.9% increase in April. The CPI index is expected to show a 0.4% increase in the headline consumer price index, from April's 0.6% uptick. The core CPI - the more closely-watched measure - is expected to rise 0.2% versus the 0.3% gain in April. The market will wait to see if the data supports Bernanke's view of rising inflation - until the data's released the USD will remain bid.
Today's Economic Release:
US: Retail Sales
US: Business Inventories
Today's Top Trades
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