Dollar weakens a little as the market looks to inflation

There was a slight retracement on the dollar gains we saw on the back of Friday’s unemployment figures. This week’s inflation data appears to be at the forefront of investor’s minds. Inflation has slowed down sharply in recent months, with headline inflation dropping from 2.7% in February to 1.6% in June. Forecasts suggest July might have increased slightly by 0.1%. If the figure comes in any higher, especially after last week’s wage rate growth, than this we could see a strengthening of the dollar.

Looking to the day ahead, it is another fairly quiet one. Perhaps politics will re-take centre stage throughout the week.