US Dollar Flat Ahead of July CPI Data as Fed Rate Decision Hangs in Balance

TLDR

• The US dollar traded flat as markets waited for July CPI data due Wednesday
• Fed funds futures show a near 50/50 split on whether the Fed will hike or hold rates in September
• Bitcoin dropped 0.2% to $63,554 and ether slipped 0.1% to $1,879
• Oil prices climbed toward $90 a barrel as Strait of Hormuz tensions grew
• The Japanese yen hovered near two-week lows despite recent US-Japan joint intervention

The US dollar was little changed on Wednesday as traders held back from making big moves ahead of the July consumer price index report.

The dollar index edged up just 0.1% to 99.88. The euro held at $1.1542, the British pound stayed at $1.3508, and the Australian dollar was flat at $0.7064.

The yen sat at around 159.41 per dollar, near its weakest levels in two weeks. That comes despite a recent joint effort by US and Japanese authorities to prop up the Japanese currency.

Economists expect headline CPI to rise 0.1% in July after falling 0.4% in June. Annual inflation is forecast to slow slightly to 3.4% from 3.5%.

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