The US dollar's recent advance, most notably against the Japanese Yen, has been arrested after Federal Reserve Chair Janet Yellen dampened some of the expectations surrounding monetary policy tightening.
The consensus estimate of economists is calling for the core consumer price index (CPI) to have risen only 1.70% percent year-over-year through the end of June. On a monthly basis, the core CPI figure is projected to climb 0.20% after a 0.10% gain in May.
Following the June rate increase, the Fed has been keenly watching inflationary trends to determine the course for policy. Given that the stakes are high, today’s session is likely to be volatile, especially for the dollar basket of currencies.
USDCHF is trading within a very tight range early Friday, with the pair hovering around the 0.9670-mark