U.S. headline inflation likely to have moderated in January

The U.S. inflation data for the month of January is set to be released this week. According to a TD Economics research report, the headline consumer price inflation is likely to have moderated to 1.9 percent year-on-year in the month, with prices rising a seasonally adjusted 0.3 percent sequentially.

Energy prices are expected to be a net positive, driven by increased gasoline prices. Also, there is a scope for a recovery in food prices, aided by the depreciation of dollar. Stripping food and energy, core inflation is expected to have risen 0.2 percent sequentially for the second straight month, stated TD Economics.

“One tailwind is dollar weakness, which in addition to food could lend a boost to weak categories like apparel”, added TD Economics.

At 19:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was neutral at -32.854. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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