US Dollar Slips Lower Ahead of Key Inflation Data That Could Shape Fed Policy
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The US Dollar Index declined on Monday amid declining bond yields as investors take profits from last week's gains.
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Markets now await key US inflation and retail sales figures this week which could shape Fed policy.
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Headline CPI is expected to moderate but core inflation should hold steady above the Fed's 2% target.
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The technical outlook suggests the US Dollar is in consolidation mode after gaining last week.
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Inflation is usually positive for a currency as it pushes central banks to raise interest rates, making the currency more attractive.