The dollar has strengthened generally this week. That includes an almost 3% gain on NOK, but far less spectacular rise against the pound, and it has lost out to the euro marginally.
Data to look out for today includes Michigan Consumer Sentiment for December, and Producer Price Inflation. However, it is Tuesday’s inflation data that will most interest the markets, coming the day before the Federal Reserve’s interest rate decision on Wednesday.
The Fed acknowledged its earlier call of a 75 basis point rate hike next week now seems unlikely, but warned markets not to “think the need to tighten monetary policy further has disappeared.” The Fed now expect 50-basis point hike next week, followed by another 50-basis point hike in February.
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