Forex Moves Today: US Dollar Slips, EUR/USD Edges Higher

The US dollar slipped against most major currencies on Tuesday, as investors weighed the prospect of more aggressive rate hikes by the Federal Reserve against the impact of rising inflation.

The EUR/USD edged higher, trading at 1.0732, up 0.1674%. The USD/JPY also rose, trading at 146.83, up 0.1637%.

The Australian dollar and New Zealand dollar were also stronger, as risk appetite improved. The AUD/USD rose to 0.6862, while the NZD/USD climbed to 0.6228.

The pound sterling was slightly weaker, trading at 1.1936 against the US dollar.

The moves in the forex market come ahead of the release of US consumer price inflation data on Wednesday. Economists are expecting inflation to rise to 8.3% year-on-year, which would be the highest level in 40 years.

If inflation comes in higher than expected, it could put pressure on the Fed to raise interest rates more aggressively. This could weigh on the US dollar and boost other currencies, such as the euro and the yen.

Here are some of the factors that could influence the forex market in the coming days:

• The release of US consumer price inflation data on Wednesday.
• The minutes of the Fed’s latest meeting, which will be released on Wednesday.
• The outcome of the Bank of Japan’s policy meeting, which will be announced on Thursday.
• The release of economic data from China and Europe.

Overall, the forex market is expected to remain volatile in the coming days, as investors continue to assess the outlook for the global economy and monetary policy.