The dollar is still weak against the pound and euro this morning but has strengthened slightly against a basket of currencies ahead of the US consumer price index, which will be released later today.
The data is expected to show a 3.6% lift in year-on-year prices, boosted by last April’s low base. St. Louis Federal Reserve President James Bullard said yesterday that he expects inflation could be as high as 2.5% next year.
Fed Governor Lael Brainard also spoke yesterday and said that the disappointing Non-Farm Payrolls data released last week shows that the recovery of the US economy still has a long way to go.
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