The dollar index held steady around 104.7 on Thursday as investors digested the latest US consumer inflation report, which had no significant impact on the outlook for Federal Reserve monetary policy.
The annual headline inflation rate in the US rose for a second consecutive month to 3.7% in August, exceeding market expectations of 3.6%. However, the annual core inflation print, which excludes food and energy prices and has a heavier weight for central bank policy decisions, slowed to 4.3% in August from 4.7% in July, in line with forecasts.
This suggests that inflation may be peaking, which could give the Fed more room to remain patient with monetary policy. However, investors will be closely watching the upcoming producer price index (PPI) report on Thursday for further clues on inflation pressures.
Engineers are also closely watching the inflation data, as it could have implications for their costs and margins. For example, if inflation continues to rise, it could lead to higher material costs for engineers, which could make it more difficult for them to stay on budget.
Overall, the dollar is likely to remain range-bound in the near term, as investors await more clarity on the inflation outlook. However, the upcoming PPI report could be a key catalyst for the dollar, and engineers will be closely watching the data for any signs of inflation pressures.
- How rising inflation could impact the cost of materials and equipment for engineers.
- How rising inflation could affect the demand for engineering services.
- How engineers are adapting their strategies to deal with rising inflation.
- The latest trends in inflation-adjusted engineering salaries.