The dollar has recovered the losses it suffered following the Federal Reserve’s decision to raise interest rates on Wednesday, the biggest hike since 2000.
The greenback has strengthened by around 1% against the euro and 2% against the pound following news that the Bank of England has also decided to raise interest rates, albeit by less than anticipated.
In the data world, initial jobless claims – the number of Americans filing for unemployment benefits – rose by 9,000 last week. Markets will now be keeping an eye on today’s non-farm payrolls and unemployment figures for a further indication of how the US economy and labour market are faring.
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