NEW YORK (Reuters) – The dollar index was barely higher on Tuesday as traders were cautious a day ahead of highly anticipated U.S. inflation data.
The dollar zig-zagged after Tuesday’s data showed U.S. producer prices increased solidly in October, indicating that high inflation could persist for a while amid tight supply chains related to the pandemic.
But traders were holding back on big moves ahead of consumer price index (CPI) data due out on Wednesday morning with inflation being the hot topic for discussion.
“Looking for any sort of major moves ahead of the U.S. CPI tomorrow is going to be futile. We will likely see a little bit more movement on the FX side of things after CPI,” said Mazen Issa, senior FX strategist at TD Securities.
He expects “a stronger…