Netherlands International: Even if inflation exceeds expectations, the dollar is unlikely to continue to rise

US inflation data to be released later today is likely to beat expectations, but any gains in the dollar are likely to be short-lived, ING analyst Francesco Pesole said in a note. He said the labour market data was more influential than the inflation data because price shocks triggered by tariffs were seen as temporary and the latest non-farm payrolls report had been revised sharply downward. He said if inflation is higher than expected, but accompanied by a further deterioration in the labour market, it could still be in line with expectations for the Federal Reserve to cut interest rates in September. That means higher-than-expected inflation is unlikely to lead to a sustained rise in the dollar. ING expects core inflation to rise 0.4% month-on-month in July, above economists' consensus forecast of 0.3%. (Golden Ten)