020 7898 0500The US dollar was on the back foot for the first time in a few days yesterday as investors reversed positions following concerns after Donald Trump unexpectedly sacked FBI chief James Comey.
However, the overall outlook for the dollar looks bright, especially after upbeat US data yesterday solidified expectations of an interest rate hike by the Federal Reserve (FED) next month.
US initial jobless claims unexpectedly fell last week, while producer prices rebounded strongly in April, which gives the extra impetus for another Fed rate hike.
Sterling hit a one-week low against the US dollar but this was predominantly because of the BoE’s inflation report that showed interest rates are unlikely to rise in the next two years.
Today focuses on inflation figures in the US, with CPI and retail sales being released in the afternoon. Fed member Harker also speaks tonight.
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