The US dollar has been all-conquering this week, strengthening by between 1.7% and 3.6% against all of its next nine rivals.
With interest rates rising sharply in the US but economic data suggesting a recession may be avoided, the dollar has looked like the place to hold one’s wealth. Several members of the US interest rate setting committee, the FOMC, have been speaking this week, which along with the minutes of the last FOMC meeting show that getting inflation down via interest rate rises continues to be the prevailing hawkish mood.
The dollar is also profiting from a mildly ‘risk-on’ mood, as the threat to both the European and Chinese economies continues.
Next week is a little quiet in the data calendar but there will be GDP for the April to June period. It is also the start of the Jackson Hole Economic Symposium, at which US Federal Reserve Chair Jerome Powell will be talking.
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USD/GBP past year
