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Sustained Dollar Rally Unlikely If Inflation Data Beat Forecasts
2025-08-12 13:02:36
U.S. inflation data later Tuesday could exceed forecasts but any dollar gains will probably be short-lived, ING’s Francesco Pesole said in a note.
Labor market data are more influential than inflation data given the view that tariff-induced price shocks are transitory and following large downward revisions in the latest nonfarm payrolls report, he said.
Higher-than-forecast inflation could still be consistent with the Federal Reserve cutting interest rates in September if accompanied by a further labor market deterioration, he said.
