US Dollar Rally Stalls Ahead of Inflation Report

The U.S. dollar's rally slowed on Wednesday as traders hesitated in anticipation of a significant consumer inflation report. After reaching a two-year high earlier in the week, the dollar stabilized following a modest U.S. producer prices report that lowered Treasury yields. The euro traded at $1.0301, while the British pound fell 0.09% to $1.2205 amid concerns over rising domestic borrowing costs and the UK's fiscal stability. Market forecasts predict a 0.2% increase in core consumer prices for December, which could limit potential interest rate cuts by the Federal Reserve. Analysts suggest that the inflation report's impact on currencies may be temporary, with ongoing focus on the upcoming Trump administration's tariff policies. As the market adjusts, all eyes remain on economic data that could influence future monetary policy decisions.