The U.S. dollar is declining against the euro and yen in trading on Wednesday. The market is focused on the US inflation data for January, which will be released on February 10. In December last year, consumer prices in the United States rose by 7% relative to the same month a year earlier – the highest rate since June 1982. The consensus forecast of experts expects inflation to accelerate to 7.3% in January, according to Trading Economics data.

Strengthening inflation in the States raises expectations of more rapid policy tightening by the Federal Reserve (Fed), and the market considers it increasingly likely that the Fed will increase the prime rate by 50 basis points at once in March.

“The situation in the currency market in the first quarter of this year will be determined by the divergence and convergence of the actions of global central banks,” says Silicon Valley Bank trader Minh Tran. – Central banks, including the European Central Bank, are voicing concerns about high inflation, and this means that they will raise rates.”

As of 9:11 a.m. Moscow time, the euro was up 0.10% against the dollar to $1.1426 from $1.1415 at the close of the previous session. The U.S. currency was down 0.10% against the yen to 115.44 yen from 115.55 yen at Tuesday’s market close.

The pound sterling rose 0.11% against the dollar to $1.3558, while the Australian dollar gained 0.21% to $0.7161.

The index calculated by ICE, which shows the dynamics of the dollar against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling and Swedish krona) lost 0.1%, the broader WSJ Dollar Index – 0.05%.