Tuesday saw a decline in the US dollar against a group of significant competitors in European trade, continuing losses from the previous session, as US 10-year Treasury rates declined ahead of significant October inflation data.
Such information will set the stage for the Federal Reserve's impending December policy decision by demonstrating the severity of the inflationary pressures the institution faces.
The Index
After plunging 0.15% on Monday, the dollar index dropped 0.2% to 105.47, with a session high at 105.73, from a one-week high at 106.
US Treasury Returns
US 10-year Treasury rates dropped 0.75% on Tuesday, continuing their downward trend for the second session and undermining the dollar's appeal to investors. These bond market developments occur before of today's significant US inflation report.
US Dollars
The current price for a December 0.25% increase in US interest rates is 15%.
US Retail Prices
Investors are currently awaiting significant US consumer pricing data for October, which is anticipated to provide significant hints regarding the probable future course of US monetary policy. As of 13:30 GMT in October, core consumer prices are predicted to rise 3.3% year over year, following a 3.7% increase in September. Core prices are anticipated to rise 4.1%.
