The dollar has regained some strength against both the pound and the euro this morning following comments from the Federal Reserve that supported more aggressive interest rate hikes later this year.
Speaking yesterday, Fed Chair Jerome Powell said that a half-point rate hike is “on the table” for the next monetary policy meeting in May. With US inflation currently around three times the Fed’s target of 2%, Powell revealed that “it is appropriate to be moving a little more quickly”.
In the data world, initial jobless claims figures came in slightly higher than expected but were still down on the previous week. All eyes will now be on today’s PMI figures.
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