The US dollar showed little movement yesterday, despite a raft of data releases. Inflation rose year-on-year slightly above expectations, reaching 1.9% instead of the predicted 1.7%. Fed policymakers say they expect Fed funds rates to remain relatively unchanged this year, despite predictions in December of two hikes.
US economic performance has dipped in recent months, but the Federal Reserve was quick to highlight that this shouldn’t be taken as a new ‘business as usual’ in the US.
On the horizon are threats of a trade war with the European Union. Following negotiations between Theresa May and the EU27 on Brexit, Donald Trump Tweeted last night, “Too bad that the European Union is being so tough on the United Kingdom and Brexit. The E.U. is likewise a brutal trading partner with the United States, which will change. Sometimes in life you have to let people breathe before it all comes back to bite you!”
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