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Dollar stabilizes after decline after US inflation report
The dollar stabilized on Friday, October 24, after the latest US inflation data showed consumer prices rose less than expected in September, maintaining expectations for another Federal Reserve interest rate cut next week.
The consumer price index rose 0.3% last month and 3.0% over the 12 months to September. Economists polled by Reuters had forecast a 0.4% rise in the CPI last month and a 3.1% rise on an annual basis.
The dollar index was last down 0.003% at 98.934 after earlier falling 0.2%.
"The report came in slightly weaker than expected... The dollar sold off after the release of this report, even though the market was almost 100% confident before the release that the Federal Reserve would cut interest rates not only next week but also in December," said Mark Chandler, senior market analyst at Bannockburn Capital Markets.
Trade war fears returned to the forefront after US President Donald Trump announced the end of all trade talks with Canada due to an advertisement published by the province of Ontario that included a recording of former President Ronald Reagan speaking negatively about tariffs.
