The USD is trading lower pretty much across the board versus the majors ahead of the US Consumer Price Index (CPI) report. Economists at Scotiabank discuss the greenback outlook ahead of the inflation data.

Data may show soft headline gains

Soft headline inflation data will nudge the USD a bit lower again after yesterday's gains as markets weigh every piece of evidence that could sway Fed thinking ahead of tomorrow’s decision. 

Market sentiment has been leaning towards the idea of a ‘hawkish skip’ so USD selling is unlikely to extend too far for now. The broader decline in the USD underway since the late May peak is extending a bit more, however.

See – US CPI Banks Preview: Headline inflation is moderating, but underlying persists