Dollar Loses Ground

Asian stocks stalled as Wall Street shares lost steam, while the dollar sagged on the back of declining U.S. yields. Investors were focused on U.S. inflation data due later in the day for clues on the pace of Federal Reserve interest rate rises this year.

The dollar index against a basket of six major currencies was flat at 89.891 after shedding about 0.2 percent overnight. EURUSD was a shade higher at 1.2337, adding to overnight gains of 0.25 percent. USDJPY was down 0.05 percent at 106.350 as the renewed political scandal in Japan pushed it off last week’s peak above 107.00.

In commodities Oil prices fell, extending losses from the previous session, as the inexorable rise in U.S. crude output weighed on markets. U.S. crude futures lost 0.3 percent to 61.19 per barrel after losing 0.8 percent the previous day. Brent fell 0.3 percent to 64.76 per barrel.

Gold prices traded slightly lower, as investors look ahead to U.S. inflation data later in the day for clues on inflation and how fast the U.S. Federal Reserve might raise rate.

The economic calendar comes with major economic events with high impact which should provide moderate to high volatility. The main economic event for today is the US Inflation Rate and Core Inflation Rate, which could support the US Dollar after the strong US data on Non-Farm Payrolls. There is also important economic data coming from Canada as BOC Gov Poloz Speaks.