The U.S. dollar strengthened before the release of a U.S. inflation report that could impact Fed interest rate decisions. The dollar index rose 0.3% to 98.52. The euro and sterling weakened. Market analyst Michael Brown noted modest hawkish Fed policy expectations.

Economists anticipate core CPI to rise 0.3% in July, potentially pushing the annual rate to 3%. Money markets predict a 90% chance of a rate cut next month. Trump’s executive order on Chinese tariffs had minimal impact on the dollar. Chip makers Nvidia and AMD aim to secure export licenses.

The Australian dollar traded down ahead of an expected rate cut by the Reserve Bank of Australia. Cryptocurrencies surged, with bitcoin nearing its record high. Ether reached its highest value since December 2021. Markets await the outcome of the U.S. inflation report and potential Fed interest rate cuts.

Read more at Yahoo Finance: Dollar edges up with US inflation report on tap