US dollar rises in expectation of relatively benign inflation data▸ S&P 500 flat and Nasaq slightly higher as investors await signs of tariff effects▸ European stocks slip ahead of Trump and Putin’s meeting to discuss UkraineThe US dollar climbed yesterday as investors waited for inflation and other data this week that could offer crucial clues about the Federal Reserve's plans to cut interest rates. The currency was 0.5 per cent higher against a basket of peers by early afternoon in New York, curbing a recent decline sparked by weaker than expected US jobs data.Inflation figures due today are expected to show a 3 per cent annual rise in consumer prices, a rate unlikely to dent expectations that the Fed will lower borrowing costs for the first time since December next month.Last month's disappointing labour market report has caused markets to price in a 90 per cent chance of a quarterpoint cut at the September meeting, but some investors are waiting to see how the inflation picture looks. Later in the week, retail sales, producer price index figures, jobless claims and the University of Michigan consumer sentiment survey will all offer more data points for investors.
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