Commerzbank: Dollar rate won’t change significantly on US inflation data

The US Consumer Price Index will be released at 13:30 GMT. Will it move the currency price? According to economists at Commerzbank, the inflation report will not drive the US dollar. 

The index is expected to fall from about 9% in the middle of the year to 7% in November.  Economists believe that if the consumer price index was seen at 7% in six months’ time, it would add to the concerns. With the estimate, there will be no cause of concerns.

If inflation in the US unexpectedly rises, the greenback would also rise following the report. The dollar would appreciate if investors expected a further tightening of monetary policy and depreciate if they doubted the ability of the central bank to tame inflation.

Economists at Commerzbank said that the baseline scenario was a further decline in inflation in November. As a result, it wouldn’t drive the dollar.