During today's Asian trading, the US dollar consolidated against major currencies, while market participants took a wait-and-see attitude ahead of the publication of inflation data from the United States, Germany, the eurozone and Japan, which will help clarify the prospects for monetary policy. Meanwhile, market liquidity is likely to be low today due to national holidays in the US and the UK.
The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) rose by 0.01% to 104.73. On Friday, the index fell by 0.37%, driven by partial profit-taking, stronger investor demand for risk assets and data that showed U.S. consumers slightly lowered their inflation expectations at the end of May, which bodes well for the prospects of a Fed rate cut. Later this week, the core PCE price index - the Fed's preferred inflation indicator - will be published. According to forecasts, the core PCE price index rose 0.3% in April after a similar increase in March. Experts warn that higher-than-expected figures may further reduce the likelihood of the Fed easing monetary policy this year.
The yen rose 0.13% against the US dollar, to 156.80, after falling below the 157 level last week for the first time since May 1. The yen is supported by an increase in Japanese government bond yields. Gradually, the focus of investors' attention is shifting to Tokyo CPI - a reliable guide to the national trend - which will be presented on Thursday at 23:30 GMT. Economists forecast that the Tokyo Core CPI rose by 1.9% per annum in May after increasing by 1.6% per annum in April. Meanwhile, Finance ministry data on Friday will reveal the size of Japan's intervention.