The U.S. dollar could get a minor lift if data today show U.S. producer price inflation is higher than expected, ING’s Chris Turner said in a note.
“Any upside surprise—and what it means for next Friday’s release of the core PCE deflator—could prove a minor dollar positive,” said Turner, who is global head of markets.
The PCE index is the Federal Reserve’s favored gauge of inflation. The dollar could also rise if the European Central Bank hints at further interest-rate cuts after an expected rate reduction when it announces a decision at 8:15 a.m. Eastern Time.
