U.S. equity futures steady as dollar extends slump

U.S. equity futures were little changed as investors digested the latest read on American inflation and assessed bets on timing for the first Federal Reserve rate increases in the pandemic era.

U.S. equity futures were little changed as investors digested the latest read on American inflation and assessed bets on timing for the first Federal Reserve rate increases in the pandemic era.

Contracts on the S&P 500 and Nasdaq 100 flatlined as investors waited for the next trading impetus. The Stoxx Europe 600 Index paused after a two-day advance, with technology and miners offsetting declines in travel and leisure and consumer products.

The pound advanced to its highest level since Oct. 29 despite calls for U.K. Prime Minister Boris Johnson to resign over a “bring your own bottle” party at the height of a lockdown meant to stem the first wave of coronavirus infections in 2020.

The dollar extended its slide as a growing tide of investors bet the world’s reserve currency has reached a peak with expectations of Fed rate liftoff largely priced-in to the market. The greenback also underperformed all its Group of 10 peers.

The Bloomberg Dollar Spot Index slipped about 0.1 per cent, extending its steepest drop since May following the release of inflation data Wednesday that confirmed a consensus view that the Fed will embark on a series of hikes starting in March.

The U.S. inflation read came after U.S. Fed Chair Jerome Powell vowed to contain the worst price pressures in nearly four decades without derailing the economic recovery from the pandemic. In prepared remarks, Fed Governor Lael Brainard said tackling inflation while sustaining an inclusive recovery is the U.S. central bank’s most pressing task.