The U.S. Dollar is trading higher against a basket of currencies on Monday as investors position-themselves ahead of the release of the June U.S. consumer price inflation (CPI) report on Tuesday.
Economists polled by Reuters expect U.S. core consumer inflation in June to have risen 0.4% from May and 4.0% from a year earlier after two straight months of sharp gains in prices.
At 14:22 GMT, the September U.S. Dollar Index is trading 92.325, up 0.209 or +0.23%.
Looking ahead to Tuesday, any signs that inflation could be more persistent than previously thought could fan expectations the Fed may exit from current pandemic-era stimulus earlier, supporting the dollar against other major currencies.
Conversely, more benign data could lead investors to think the U.S. central bank can afford to maintain an easy policy framework for longer, encouraging more bets on risk assets, including risk-sensitive currencies, according to Reuters.