Market News
Currency markets brace for US inflation data - REUTERS
By Kevin Buckland and Alun John
Summary
- Traders watch for signs of tariff pressures in US CPI data
- Aussie dips after widely expected RBA rate cut
- Sterling supported by British jobs data
TOKYO/LONDON, Aug 12 (Reuters) - Currency markets were in a holding pattern on Tuesday ahead of U.S. inflation data - important for Federal Reserve policy expectations - with traders' caution capping the pound's gains after UK jobs data and the Australian dollar's losses.
A moderate reading on U.S. price pressures could cement bets for a Fed rate reduction next month, which increased after last week's soft payrolls data.
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But if signs emerge that U.S. President Donald Trump's tariffs are stoking inflation, that could pressure the central bank to stay on hold, though the bar for that is higher. That in turn would fuel further tensions with Trump, who has urged the Fed to cut rates.
