The Federal Reserve’s latest inflation announcement saw the US dollar shoot up against both currencies yesterday. However, this morning the dollar is weaker, falling back to pre-inflationary levels against both sterling and the euro.
This follows US annual core inflation rising higher than expected yesterday to 6.3% , surpassing market forecasts of 5.9% (the highest core inflation since March). Similarly, the latest annual US inflation data surpassed expectations coming in at 8.3%, 0.2% above forecasts of 8.1% despite having eased for a second straight month.
PPI data will be announced today. In July, producer prices in the US unexpectedly fell 0.5% month-over-month in July and is expected to rise to 0.1% today.
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