Global traders are focused on upcoming US producer inflation data to gauge the Federal Reserve's future interest rate decisions. This comes after a softer-than-expected consumer price index (CPI) reading on Tuesday, which led to a broad weakening of the US dollar against major currencies.
The reduced inflation expectations have curbed bets on an immediate Fed rate hike, with the probability for a September hike now seen at 58% compared to 76% before the CPI report. Attention now shifts to the Producer Price Index (PPI) for further clarity on inflationary pressures.
For gold and currency rates in Pakistan, a weaker US dollar globally, driven by reduced expectations of Fed rate hikes, could potentially support international gold prices and ease pressure on the USD/PKR exchange rate.
بحوالہ / Source: www.brecorder.com