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US Dollar Mixed Early Tuesday Ahead of Light Post-Holiday Week, Focus on Inflation Data

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The US dollar was mixed against its major trading partners early Tuesday -- down versus the yen and Canadian dollar, up versus the euro and pound -- after the long holiday weekend, with the focus on inflation data while Federal Reserve officials are in quiet period ahead of the Sept. 15-16 Federal Open Market Committee meeting.

The New York Fed's inflation expectations report for August is due to be released at 11:00 am ET, followed by consumer credit data for July at 3:00 pm ET. Earlier Tuesday, the National Federation for Independent Business reported that small business optimism declined in August, led by decreased expectations for the overall economy.

Weekly mortgage applications and same-store retail sales data are due to be released on Wednesday.

Thursday's busy schedule includes weekly jobless claims, producer price and existing home sales data for August and weekly energy and natural gas stocks data.

The consumer price report for August and the first look at September University of Michigan consumer sentiment data are due to be released on Friday.

A quick summary of foreign exchange activity heading into Tuesday:

EUR/USD fell to 1.1612 from 1.1622 at the Monday close and 1.1624 at the same time Monday morning. There are no Eurozone data on Tuesday's schedule, but European Central Bank policy board member Frank Elderson is due to speak at 11:00 am ET. The next European Central Bank meeting is scheduled for Thursday, when a 25-basis point rate increase is expected.

GBP/USD fell to 1.3531 from 1.3540 at the Monday close and 1.3536 at the same time Monday morning. There are no UK data on Tuesday's schedule, but Bank of England Governor Andrew Bailey is due to speak at 9:15 am ET. The next Bank of England meeting is scheduled for Sept. 17.

USD/JPY fell to 154.2912 from 154.3711 at the Monday close and 154.6711 at the same time Monday morning. Japanese GDP growth slowed in Q2 while the current surplus expanded in July and Japanese service business sentiment improved in August, according to data released overnight. The next Bank of Japan meeting is scheduled for Sept. 17-18.

USD/CAD fell to 1.3808 from 1.3814 at the Monday close and 1.3820 at the same time Monday morning. There are no Canadian data on Tuesday's schedule. The next Bank of Canada meeting is scheduled for Oct. 28.

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