Dollar index and eurodollar steady
CPI data in focus
Yen hits onemonth low

LONDON, Feb 10 Reuters Currency market moves were small on Thursday as investors waited for key data on U.S. inflation to give clues on the Federal Reserve39;s policy tightening trajectory.

Investors39; appetite for riskier assets has been hurt so far this year by expectations that the U.S. Federal Reserve will begin tightening monetary policy, starting with a rate hike at its March meeting.

Strong earnings helped global stocks rise on Wednesday, but they struggled to maintain this momentum during the Asian and early European sessions on Thursday.

Markets were focused on U.S. inflation data due later in the session. The headline consumer price index is expected to have increased more than 7 in January, yearonyear, a level reminiscent of the inflation shocks of the 1970s and 1980s. 

The higher the current inflation rates the stronger the perception is likely to be amongst market participants that the Fed will have to act even faster, more decisively and for a prolonged period of time than is currently expected, wrote Commerzbank FX and EM analyst Antje Praefcke in a client note.

That in turn is likely to provide a boost for the dollar.

At 0825 GMT, the dollar index was down by less than 0.1 on the day, at 95.503 . After large swings in the previous two weeks, it was on track for a minimal weekly change so far this week.

Investors are pricing in a 71 chance of the Fed hiking rates by…