The dollar has weakened slightly against the pound and the euro this morning following inflation rate figures yesterday.
The US consumer price index increased 0.5% in July after climbing 0.9% in June, the largest drop in the month-to-month inflation in 15 months. Excluding the volatile food and energy components, the CPI (Core Price Inflation) rose 0.3% after increasing 0.9% in June.
These figures feed into the Federal Reserve’s stance that higher inflation is transitory. However, many analysts still expect that the Fed will taper its monetary stimulus programme this year.
Jobless claims figures will be released for the US later today, followed by consumer sentiment data tomorrow.
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