The dollar weakened against sterling yesterday following the news that the BoE could look to increases interest rates to a greater extent than previously forecast. Still, it was a good day for US economic data, as initial jobless claims came in at 221,000 when 232,000 had been forecast.
Meanwhile, the Federal Reserve’s Patrick Harker gave a speech in which he said he was open to an interest rate hike in March. He also said he had lightly pencilled in two rate hikes for 2018, but this could increase to three depending on inflation and the economy.
Like Europe, today is a quiet one for the US, but it will be interesting to see whether the dollar can retrace yesterday’s losses, or the pound can break through a psychological barrier and push even higher.
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