The dollar traded sideways at the start of the Asian session on Wednesday, shrugging off renewed attacks on shipping in critical waterways in the Middle East, as currency markets awaited the release of inflation data later in the global day.

Market Expectations

Traders are watching a meeting convened by New Zealand Prime Minister Christopher Luxon with National Party lawmakers in Wellington on Wednesday, amid mounting speculation over his leadership just months before a general election.

The main focus for markets this week is on the release of U.S. inflation data due later on Wednesday for clues to the direction of Federal Reserve interest rates, as last week’s softer-than-expected jobs report and a press conference by Fed Chair Kevin Warsh last month did little to dispel doubts.

Oil prices edged up as trading resumed in Asia on Wednesday, with Brent crude 0.6% higher at $89.40 a barrel after an attack by Iran-backed Houthis on a cargo ship in the Bab el-Mandeb strait and a U.S. military strike on a container ship off Pakistan attempting to break its blockade of the Strait of Hormuz.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.