Dollar index (USDX) eyes important US data tomorrow

There are no US economic releases due out today, but we do have some important numbers tomorrow. At 12.30pm GMT tomorrow we get the latest monthly Consumer Price index (CPI) report. The covers the June monthly and annualised readings and it can impact the US markets and the dollar. 

So, the markets are forecasting CPI to have fallen back last month, by around -0.1%. CPI had risen by 0.5% in May. The annualised reading is also expected to fall back, from 4.2%, to around 3.8%. Now of course much of this expectation surely has a lot to do with the drop in oil prices recently and as such it will not come as a surprise to the markets to see it fall back in June. 

Conversely, if it does not, then that will probably evoke a greater reaction. The dollar will be front and centre of that reaction and earlier this morning we reported the US currency staging a rebound. That saw the index rise to 101.22, as we noted, but since then it has fallen all the way back as low as 100.79. We covered that too, when we noted the corresponding rally in the EUR/USD. The dollar has been on the rebound again since though, but yet to recover any levels back above the 101 handle. The index is currently trading at 100.93