USD started the week on a positive note, as investors are turning to the US inflation data which will be released tomorrow. DXY Index has increased by 0.22% to 92.79. USD has also gained against EUR as well as JPY. Tomorrow, the consumer price data will be a key focus for FX traders. Currently, economists are expecting inflation to slow down to 4.2%. Later in the week, we will also have US retail sales and production figures. All these data will provide evidence for the next Feds meeting, to be held on September 21st.
On Wednesday, China will release its retail sales data which will likely show a further slowdown in economic growth. CNY slid slightly recently against the USD partly due to Beijing’s latest regulatory measures on the tech sector. Steps include a potential breakup of Ant’s Alipay and strengthened protections for workers at ride-sharing and delivery companies.