The dollar is still trading at strong levels this morning as growing concerns over the Omicron variant of coronavirus lead markets to favour ‘safe-haven’ currencies, such as the greenback.
Initial jobless claims in the US have fallen to their lowest level in over 50 years. President Joe Biden praised these job figures but also indicated that today’s inflation could be high. Nonetheless, he urged caution over the interpretation of these figures, arguing that they do not account for the recent fall in energy prices.
“The information being released on energy in November does not reflect today’s reality, and it does not reflect the expected price decreases in the weeks and months ahead”.
Markets will now be awaiting next week’s Federal Reserve’s monetary policy meeting when officials are expected to confirm that they will speed up the tapering of their asset programme.
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