Nervous Calm As Dollar Prepares For Inflation Test.

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Major currencies held steady, with traders cautious about placing large bets ahead of U.S. inflation data, which markets will scrutinise for guidance on how steeply the U.S. Federal Reserve will raise interest rates in coming months.

The figures are due at 1230 GMT. Economists expect year-on-year headline inflation (USCPNY=ECI) to be running at a scorching 8.7%, a small retreat from June’s whopping 9.1% figure. Core inflation is expected at 0.5% month-on-month (USCPF=ECI)

The greenback was broadly steady, having paused a bit from a retreat that began in the middle of July.

It bought 135 Japanese yen and sat at $1.0215 per euro and $1.2089 versus sterling , all little changed on the day and largely unchanged since the start of this week.

“All eyes are on U.S. CPI,” said Carol Kong, a currency strategist at Commonwealth Bank of Australia.


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