The dollar reached a 4-month high against the euro yesterday, as it continues to strengthen following a positive Non-Farm Payrolls report at the end of last week.
The markets will turn their focus to US inflation rate figures later today. High inflation could boost expectations that the Federal Reserve will taper monetary policy and strengthen the dollar further. After, after a rapid increase last month, we could see a slowdown this month.
Core inflation is expected to come in at 4.3% for July, compared to 4.5% previously.
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