The dollar strengthened by around 0.5% across the board yesterday, with inflation taking the headlines. While CPI inflation is at 3.2%, accelerating from June’s 3%, core inflation fell to 4.7%. Moderating underlying price pressures are positive signs, and included a sharp fall in air fares.
This afternoon, there will be July’s US producer prices, which are expected to rise 0.2% from a 0.1% increase in June 2023. There will also be the Michigan consumer sentiment index, which is expected to decrease to 71 in July from 71.6 in June.
The first data of note next week will be retail sales on Tuesday, then building permits and the minutes of the Federal Reserve’s interest-rate setting committee the FOMC on Wednesday.
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USD/GBP past year
