Investing.com – In European markets on Tuesday (September 13), the U.S. dollar index fell, approaching the 108 mark, while closely watched U.S. inflation data is about to be released, and the data may be set before the Fed’s meeting on interest rates next week. tone.

 

As of 16:17 Beijing time (04:17 a.m. ET), the U.S. dollar index futures, which measure the U.S. dollar against six trade-weighted major currencies, fell 0.26% to 107.812; the U.S. dollar index fell 0.28% to 108.03. The yield on the benchmark U.S. 10-year Treasury note was at 3.325%.

 

All eyes are now on the U.S. consumer price index (CPI) for August, which will be released at 20:30 Beijing time. The data is the last important indicator to assess the level of U.S. inflation before the Fed meeting next week.

 

Analysts expect the CPI to rise at an annual rate of 8.1%, down from 8.5% in July, as gasoline prices have fallen nearly 10% since last month. The monthly rate is expected to be -0.1%.

 

Investors need to focus not only on headline inflation, but also on core inflation, which excludes food and fuel, to understand monthly trends.

 

"Only surprising data will derail the Fed from its third straight 0.75% rate hike," ING analysts said in a note.

 

"After all, the economy is growing well and creating a lot of jobs, and Fed Chair Jerome Powell also said, 'We need to act now, as we've been doing, with decisive, determined action, and we've got to hold on until the end of the job. .'"

 

At present, the market believes that the probability of the Fed raising the benchmark interest rate by 0.75% at next week's meeting is about 90%.

 

Elsewhere, EUR/USD was up 0.24% at 1.0143, as the euro continued to benefit from the European Central Bank's sharp rate hike last week and hawkish comments from key officials including Bundesbank President Joachim Nagel.

 

Data released earlier on Tuesday showed Germany's CPI remained high at 7.9% in August, with high inflation expected to hit Germany's ZEW economic sentiment index.

 

GBP/USD rose 0.32% to 1.1717, extending strong gains overnight, despite a sharp slowdown in U.K. job creation in the three months to July.

 

The UK added just 40,000 jobs during the period, down from 160,000 in the three months to June, the ONS said. Even so, the unemployment rate fell to 3.6%, the lowest level in nearly 50 years, as large numbers of people exit the labor force altogether.

 

USD/JPY fell 0.38% to 142.29, with the yen edged up against the dollar amid speculation that the Japanese government may intervene in the currency market to boost the troubled yen.

 

The risk-sensitive AUD/USD was up 0.05% at 0.6891 after data showed the country's consumer and business confidence remained subdued, despite a slight improvement in recent months.