Yesterday the dollar fell to its lowest mark against sterling for a year as UK inflation figures were released. Expectations of an interest rate increase have been bolstered, even if it still seems unlikely it will happen this time around. However, while the speculation continues we could see some further weakening.
It’s a busy rest of the week for the US in terms of economic data, with the release of the US PPI data later today. Tomorrow see the release of inflationary CPI data and core retail sales on Friday.
If these figures prove positive then we could see some sentiment around an interest rate rise by the Federal Reserve come to the fore; this would likely see the dollar strengthen as it goes head-to-head against sterling.
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