# Dollar treads water near 7-month lows ahead of U.S. inflation data

> The dollar is trading near seven-month lows ahead of key US inflation data. Traders are debating whether the Federal Reserve must lift its target rate above 5% to curb persistent inflation, and they note that earlier 2022 rate hikes are already feeding through to the economy.

- Date: 2023-01-10 · published 2023-01-10T12:00:00.000Z
- Category: macro · region US · magnitude low
- Page: https://feedsoft.ai/events/37697-dollar-treads-water-near-7-month-lows-ahead-of-u-s-inflation-data
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A softer dollar on rate-peak debate makes dollar-priced commodities such as grains and meals relatively cheaper for foreign buyers, a mild support for prices.

## Read by commodity

- DXY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2024-01-11 | [Sterling gains vs dollar ahead of US inflation data](https://feedsoft.ai/events/32373-sterling-gains-vs-dollar-ahead-of-us-inflation-data.md) | +0.9% | +1.1% |
| DXY | 2022-09-12 | [Latam currencies rally as dollar weakens ahead of U.S. inflation data](https://feedsoft.ai/events/39788-latam-currencies-rally-as-dollar-weakens-ahead-of-u-s-inflation-data.md) | +0.9% | +2.8% |
| DXY | 2024-08-29 | [USD/CAD drops to near 1.3460 as US Dollar edges lower ahead of inflation test — Octa](https://feedsoft.ai/events/29036-usd-cad-drops-to-near-1-3460-as-us-dollar-edges-lower-ahead-of-inflation-test.md) | +0.5% | -0.7% |
| DXY | 2023-04-11 | [Latam FX at 5-year high as dollar dips ahead of U.S. inflation data \| Financial Post](https://feedsoft.ai/events/36626-latam-fx-at-5-year-high-as-dollar-dips-ahead-of-u-s-inflation-data-financial.md) | -0.4% | -1.0% |
| DXY | 2024-07-26 | [Dollar treads water after tame US inflation report, yen rally stalls](https://feedsoft.ai/events/29456-dollar-treads-water-after-tame-us-inflation-report-yen-rally-stalls.md) | +0.3% | -0.9% |

## Sources

- reuters.com: https://www.reuters.com/markets/currencies/dollar-languishes-fed-rate-hike-fears-recede-china-reopening-boosts-optimism-2023-01-10/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.