The dollar was on track to finish higher against a basket of rivals for a third session Tuesday, as investors were cautious ahead of what many expect to be a volatile session Wednesday.

A reading on U.S. consumer-price inflation in July is expected then, along with minutes from the July meeting of Federal Reserve policy makers. In Europe, meanwhile, investors are anxious to see whether the German parliament will support a third bailout package for Greece.

The ICE U.S. Dollar index, a measure of the dollar’s strength against a basket of six rivals, was up 0.2% to 96.9600. The index had traded above the 98 level as recently as a week and a half ago.

U.S. housing starts rose 0.2% in July to the highest annual rate since October 2007. But the dollar shrugged off the strong reading, just as it ignored a weak reading from the Empire State Manufacturing index on Monday.

The yuan shed about 3% of its value versus the dollar after Chinese policy makers announced a major shift in their methodology for controlling the yuan’s value a week ago. But the Chinese currency has been relatively stable since Friday. Since then, it has traded around 6.40 to the dollar.

Elsewhere, the euro fell 0.4% to $1.1030; the dollar was little changed versus the yen at ¥124.43; and the British pound rose 0.6% to $1.5682 after official data showed that the U.K. consumer-prices index rose 0.1% in July. By comparison, the index was flat in June.

Source: MarketWatch