The dollar has been strengthening against most major currencies due to its status as a safe haven currency. Support for the dollar comes due to worries about how the need to tackle high inflation by hiking interest rates could trigger a recession.
At the ECB’s forum yesterday, Federal Reserve Chairman, Jerome Powell, said that there is “no guarantee” that high inflation can be tackled without hurting the jobs market, but did add that he believes the US economy is in “strong shape”.
Later today, personal income and personal spending data will be released for the US, which is expected to show. Personal income is expected to show a slight increase, whilst spending is predicted to decrease.
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