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Dollar Holds Firm Ahead of CPI Report; Bitcoin Steady Above $120K

As the financial markets brace for this week’s crucial US inflation data, the dollar continues to trade near a three-week high, supported by safe-haven flows and rising anticipation over the Federal Reserve’s next move.

Markets Brace for Key Inflation Data as Dollar Strengthens

The US dollar index (DXY), which measures the greenback against a basket of six major currencies, remained steady on Monday, reflecting investor caution ahead of Wednesday’s Consumer Price Index (CPI) release. A stronger-than-expected inflation reading could bolster expectations for prolonged high interest rates, providing further upward momentum for the greenback. Reuters

Market participants are closely watching whether inflationary pressures persist, a key factor in shaping the Fed’s policy outlook. While current consensus points to rates holding steady, any upward surprise in the CPI could trigger renewed speculation about future tightening.

Against this backdrop, the euro and Japanese yen showed little movement, with traders unwilling to take aggressive positions before clearer signals emerge from the data. Meanwhile, US Treasury yields ticked higher, further supporting dollar strength in early trading hours. World Today News

In the digital asset space, Bitcoin continued to show resilience, holding comfortably above the $120,000 mark. The world’s largest cryptocurrency remains supported by stable institutional interest and cautious optimism in the crypto sector. Ethereum also posted modest gains, mirroring broader altcoin sentiment.

Global equity markets traded in a narrow range, with many investors opting for a wait-and-see approach. Risk appetite is expected to remain muted until the inflation report provides a clearer picture of the economic landscape. The Economic Times

Looking ahead, the CPI release could prove decisive for short-term market direction. A softer inflation number may ease pressure on the Fed and weaken the dollar, potentially lifting equities and crypto assets. Conversely, a hotter print could reinforce a hawkish narrative and trigger a renewed risk-off tone. efxdata

For now, investors are navigating with care, weighing inflation risks against hopes of a policy pivot. As inflation remains the key market driver, the coming days are expected to bring sharper volatility across forex, crypto, and equity markets.

 

 

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