Currency Buzz: Dollar Index Consolidating Around 108 Levels Ahead Of US CPI

13 Jul 2022 , 01:46 PM

The dollar index is seen consolidating near 108 levels as investors await key US consumer price inflation data later in the global day that would give better clarity to Federal Reserve policy tightening path amid rising concerns of recession. The International Monetary Fund on Tuesday warned that avoiding recession in the United States will be increasingly challenging as it again cut its 2022 U.S. growth forecast to 2.3% from 2.9% in late June as recent data showed weakening consumer spending. The Fund also cut its 2023 real GDP growth forecast to 1.0% from 1.7% on June 24, when it met with U.S. officials for an annual assessment of U.S. economic policies. The dollar index, that measures the greenback against a basket of currencies is up 0.12% at 108.04. Meanwhile, the euro is clinging to parity against the dollar, having breached the level yesterday. Powered by Commodity Insights