Market Outlook: Dollar Could Strengthen After US PPI Data and ECB Interest Rate Decision

Forex - Chris Turner from ING stated that if the data released at 1630 GMT shows that U.S. producer price inflation is higher than expected, the U.S. dollar could experience a slight increase. The head of global markets commented, "Any upside surprise - and its implications for the core PCE deflator to be announced next Friday - could create a small positive effect on the dollar." The PCE index is the Fed's preferred inflation gauge. The dollar could also rise if the European Central Bank's decision to be announced at 1615 GMT signals further interest rate cuts following the anticipated rate reduction. Turner emphasized that this could push the DXY dollar index from its current level of 106.570 towards 107.