By Sinéad Carew and Karen Brettell
NEW YORK (Reuters) – The dollar index dipped in choppy trading on Tuesday as investors awaited data on Wednesday that will be the next major indicator of whether rising price pressures are accelerating.
U.S. producer prices increased solidly in October, data showed on Tuesday, indicating that high inflation could persist for a while amid tight supply chains related to the pandemic.
But traders were holding back on big moves ahead of consumer price index data due on Wednesday morning.
“Looking for any sort of major moves ahead of the U.S. CPI tomorrow is going to be futile. We will likely see a little bit more movement on the FX side of things after CPI,” said Mazen Issa, senior FX strategist at TD Securities.
He expects “a stronger print than consensus on what is already expected to be a fairly hot CPI print.”
Economists polled by Reuters see monthly CPI accelerating to 0.4% from the…