Will the Dollar, Which Fell Ahead of the U.S. CPI Report, Rebound?
14.10.2026
- U.S. September Consumer Price Index (CPI)
- Remarks by BOE Governor Bailey
In the U.S. currency markets the previous day, the U.S. dollar fell against major currencies. In addition to a pause in the rise of crude oil prices and a decline in long-term U.S. interest rates, the dollar was weighed down by remarks from New York Fed President Williams, who projected one more rate hike this year but indicated that no further hikes would be necessary in 2027.The Dollar Index fell 0.37% to 102.18, and the dollar-yen exchange rate dropped from the 158.50 yen range to as low as the 157.80 yen range at one point. Today, it continues to trade in the low 158 yen range.
Among European currencies, the euro and the pound rose against the dollar. The euro/dollar pair rebounded to around $1.1198, buoyed by a weaker dollar, despite lingering concerns over France’s fiscal situation. The pound/dollar pair also rose from the low $1.3200 range the previous day to the $1.3250 range.During today’s Asian trading session, the euro/dollar pair is trading in the 1.1200 range, while the pound/dollar pair is in the 1.3260 range; investors should also watch for the pound’s reaction to remarks by BOE Governor Bailey at 14:30.
Today’s key economic indicators include remarks by BOE Governor Bailey at 14:30, Germany’s September Wholesale Price Index at 15:00, and the U.S. September CPI and Canada’s August housing permits at 21:30.While the U.S. CPI is expected to show accelerating growth in the headline index, the core index is projected to slow to 0.2% month-over-month. Whether these results alter expectations for U.S. interest rate hikes is likely to influence the direction of the dollar and European currencies.
Author: Keisuke Sakurai
