By XE Market Analysis
he Dollar has come under moderate but broad pressure. EUR-USD lifted back above 1.1650, gaining about 30 pips on the day amid a bout of general dollar weakness. Last week's sub-forecast U.S. CPI data, which followed more benign than anticipated PPI figures the day before, has continued to have some resonance, although reports that President Trump will in the coming days announce his decision to proceed with tariff hikes on $200 bln worth of Chinese imports is a potential dollar-support event. If and when confirmed, the tariff hike would mark a major escalation in the Sino-U.S. trade war and likely lead to fresh risk-off conditions in global markets. Final August inflation data out of the Eurozone had little impact in forex markets. HICP was confirmed at 2.0% y/y, as expected and down from 2.1% y/y in July, while core inflation was confirmed at a benign 1.0% y/y. USD-JPY has been in an consolidation near 112.00, holding just below Friday's six-week high at 112.16. Cable has traded softer, back under 1.3100, and EUR-GBP posted moderate gains. The IMF today joined the amplifying cacophony of warnings about a no-deal Brexit, and also said that all of the Brexit scenarios, including of the soft variety, would be damaging to the UK economy.
