Pressure on risk currencies subside, U.S. inflation in focus – Reuters

Pressure on risk currencies subside, U.S. inflation in focus – Reuters

TOKYO, July 12 (Reuters) - Risk currencies hovered above their recent lows against the dollar and the yen on Monday, as fears about slowdown in the global economic recovery appeared to have subsided for now.

The outlook for U.S. inflation and the speed of the Federal Reserve's future policy tightening are back in focus ahead of Tuesday's consumer price data and Fed Chair Jerome Powell's testimony from Wednesday.

"If we see strong data, the Fed could bring forward their projection for their first rate hike further from their current forecast of 2023. That would also mean they have to finish tapering earlier," said Shinichiro Kadota, senior FX strategist at Barclays.