FX.co ★ Dollar Holds Steady Ahead of Key CPI Report

The dollar index held steady just below 99 on Friday, poised to conclude the week on a positive note as investors geared up for an important inflation report, expected to have significant implications for economic projections and interest rate policy. This report, delayed due to the ongoing government shutdown, is anticipated to reveal persistent inflationary pressures. Nevertheless, it is unlikely to deter the Federal Reserve from reducing rates in the upcoming week. However, a reading that exceeds expectations could impact the Fed's decision in December by dampening anticipation for further rate reductions. Traders were also attentive to developments in trade, following confirmation from the White House about the impending Trump-Xi meeting in South Korea next week. Prior to this, US and Chinese representatives are slated to engage in preparatory discussions in Malaysia over the weekend. The dollar is on track for its most substantial weekly advance against the yen, as expectations for fiscal stimulus in Japan rise. Concurrently, both the euro and the pound have exhibited weakness against the dollar.