The US dollar lost around 1% against its major rivals including the pound and euro yesterday, stretching its losses over the past week and only bettering the Japanese yen.
The greenback has reached mid-June well over 2% down on the euro and sterling compared to the start of the month.
The reason for the dollar’s weakness has been the Fed’s pausing of interest rate increases this week, while the ECB and BoE plough on.
Yesterday’s positive retail sales data (growth of 0.3% when a drop had been predicted), combined with a fall in inflation on Tuesday to just 4% to show that the US is winning the battle against inflation without apparently trashing its economy.
Data tends to slow down in the US in the latter part of the month, and there is little to get excited about next week, even after the markets open on Tuesday after the ‘Juneteenth” public holiday on Monday. However, Fed chair Jerome Powell will be speaking before Congress on Thursday and the market will be looking for more signs on monetary policy.
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USD/GBP past year
