The dollar weakened by more than 2% against the pound yesterday, amid a more general sell-off.
It came in the wake of the general inflation rate in the US stabilising at 8.2%, the lowest rate since February. However, the core inflation rate continued to accelerate, suggesting that the Fed’s aggressive monetary-tightening policy will need to continue.
Later today there will be retail sales at 1.30pm (UK time) and the Michigan Consumer Sentiment index at 3pm.
In the business news, the New York Times reports that the Biden administration has imposed tough barriers on sales of semi-conductors and chip-making technology to China, and not just from the US. It is intended to slow the advance of Chinese technology, in a new version of the trade war from the Trump era.
USD/EUR past year
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