The dollar is still struggling against the pound and the euro this morning following Wednesday’s inflation figures. Yesterday’s data releases also failed to provide much support.
Initial jobless claims figures were worse than expected, rising to 230k from 207k. Markets had predicted a drop to 200k. The December Producer Price Index in the US was also higher than anticipated, rising 8.3% YoY.
Speaking yesterday, Fed Vice Chair nominee Lael Brainard said that the Fed would be in a position to start lifting interest rates once its bond buying purchase programme ends in March. So far these comments do not seem to have caused much of a market reaction.
Retail sales and industrial production data will be released later today and could give the dollar fresh impetus.
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