The dollar’s strength continues this morning after Federal Reserve Chair Jerome Powell revealed that he now believes that inflation may not be transitory like he originally thought.
He also announced that he expects some relief in inflation in the first half of 2022. His revelation has fuelled the buying of the greenback due to its ‘safe haven’ status.
Looking at recent US data, GDP growth figures increased but were still relatively underwhelming. Initial jobless claims figures rose last week to 363k. Markit PMI data for September will be released this afternoon and is expected to fall.
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