The dollar has weakened this morning following the release of US inflation data yesterday. Despite inflation coming in as expected, it did not exceed expectations. The markets had priced this in and so the greenback has weakened.
Inflation came in at 7% year-on-year as expected. Energy was the biggest contributor to the gain, but the rise was smaller than in November. Core inflation came in at 5.5%, slightly above forecasts of 5%. This was the largest annual increase in core consumer prices since February 1991.
Jobless claims figures for the US will be released today followed by retail sales figures tomorrow.
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