According to Jinshi, Lee Hardman, an analyst at Mitsubishi UFJ Financial Group, said that the US dollar may appreciate if the inflation data released by the United States on Wednesday shows that price pressures unexpectedly rose in August.
Hardman said the data needs to be consistent with slowing inflation to support current expectations of a Fed rate cut. Although stronger inflation data for August will not prevent the Fed from cutting rates next week, it will cast further doubt on the scale of aggressive easing currently priced in by the Fed and pose upside risks to the dollar.