Dollar ebbs as markets await key global inflation reports
dollar waned on Tuesday following a slight pick up in risk appetite, but it held tight ranges against its peers ahead of key inflation data from major economies this week that markets are looking to for guidance on the global interest rate outlook.
Currency moves were largely subdued in early Asia hours after a quiet overnight session due to holidays in Britain and the United States, but the overall mood was positive with world shares firming.
The euro was a touch firmer at $1.0860 despite some dovish comments from European Central Bank (ECB) policymakers on Monday and data showing German business morale stagnated in May.
German inflation data due on Wednesday and the wider euro zone bloc's reading on Friday will be watched for confirmation of an ECB rate cut expected next week, alongside clues on how soon subsequent easing from the central bank could come.
«The ECB is preparing itself for rate cuts next week, but the importance is what happens beyond that, and the lack of guidance from ECB speakers is telling in that sense,» said Rodrigo Catril, senior FX strategist at National Australia Bank (NAB).
«Obviously, the inflation dynamics will set the tone in terms of what to expect.»
Sterling held near an over two-month high and last bought $1.2774, while the New Zealand dollar inched up nearly 0.1% to peak at $0.6155, its strongest level since mid-March.
Down Under, the Aussie edged 0.03% higher to $0.6657, with the country's monthly consumer price index data also due on Wednesday.
All of that data, however,
