Dollar falls against euro, yen ahead of US inflation statistics

The exchange rate of the US dollar fell against the euro and the yen on November 10 morning, Report informs referring to the auction data.

Later in the day, investors are looking forward to the publication of annual US inflation data for October.

The euro against the dollar rose to $1.0025 from the last close of $1.0011. The dollar against the yen at the same time fell to 146.13 yen from 146.44 yen. The dollar index (the exchange rate against a basket of currencies of six US trading partners) decreased by 0.21%, to 110.32 points.

The main event of the week for investors is the statistics on annual inflation in the US, which will be published later in the course of trading. Analysts expect consumer price growth to slow down to 8% in October from 8.2% a month earlier. At the same time, the value remains well above the target level of the US Federal Reserve at 2%.

Inflation data may influence the Fed’s decision on the rate at the December meeting. Since the beginning of the year, the rate has been raised six times in a row to combat rising prices, while at the previous four meetings the regulator raised the rate by 75 basis points each time.

Now, against the backdrop of an expected slowdown in inflation, for the fourth month in a row, markets are allowing a slowdown in rate hikes. According to the CME Group, 57% of experts expect a rate hike of 50 basis points in December, and only 43% expect a rate hike again by 75 basis points.