U.S. Inflation Data, Middle East Conflict Could Trigger More Dollar Volatility -- Market Talk

0751 GMT - The dollar faces more volatility due to U.S. inflation data at 1230 GMT and the ongoing Middle East conflict, Commerzbank's Antje Praefcke says in a note. Should the datacome in lower than anticipated, the market could trim expectations for interest-rate rises which could weaken the dollar, she says. In the less-likely scenario of higher-than-expected data, the market could raise its rate-rise bets, lifting the dollar, she says. To complicate matters further, the Iran war remains a source of uncertainty and a key dollar driver. An escalation in the war would support the dollar while an agreement to end the conflict would weaken the dollar, she says. The DXY dollar index trades steady at 99.858.(renae.dyer@wsj.com)

(END) Dow Jones Newswires

August 12, 2026 03:51 ET (07:51 GMT)