Investing.com – The U.S. dollar steadied in early European trade Friday in the wake of the latest consumer inflation release, while sterling bounced after stronger-than-expected U.K. growth data.
At 03:10 ET (07:10 GMT), the , which tracks the greenback against a basket of six other currencies, edged lower to 102.350 but remains on course for a fourth straight weekly gain.
Dollar steady after U.S. CPI release
The dollar is trading largely unchanged Friday as traders digested the latest inflation reading, with the U.S. growing as expected in July from the prior month.
While the reading spurred bets that the will keep rates on hold in September, it also saw markets trim their expectations for a rate cut this year, with rates expected to remain at 22-year highs.
There’s more inflation data due later in the session, in the form of for July, adding more fodder for Fed policymakers ahead of next month’s important Fed meeting.
U.K. GDP grew more than expected in 2Q
rose 0.3% to 1.2708 after data showed that the grew 0.2% in the second quarter, against expectations for a flat reading, helped by monthly growth of 0.5% in June.
That said, the U.K. economy remains the only large advanced economy yet to regain its pre-COVID late-2019 level, and with inflation remaining highly elevated further interest rate hikes could stifle this growth going forward.
Euro edges higher after French CPI
rose 0.1% to 1.0992, with the euro edging higher after French inflation, harmonized to be comparable throughout the European Union, rose 5.1% on an annual basis in July, slightly above the 5.0% expected.
The could pause its year-long rate-hiking campaign in September, after hints by President Christine Lagarde last month, but a further rise by year-end is still on the cards with inflation running hot.
Yen close to key level
Elsewhere, edged higher to 144.78, with the pair close to the highest level since late, when it also briefly breached the 145 level, stoking fears of another round of intervention.
rose 0.1% to 0.6522, helped by Reserve Bank Governor Philip Lowe warning that sticky could invite more by the bank, while fell 0.1% to 7.2113, with the People’s Bank of China seen selling dollars to support the Chinese currency.
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