The dollar is struggling against a basket of currencies due to improved market mood. As a safe-haven currency, it tends to benefit when the market mood is low.
Focus will be on the US’ inflation data, released later today. The figures are expected to rise to 7.8% year-on-year and 0.8% month-on-month. Core inflation is expected to rise to 6.4% year-on-year. The outcome of this data is likely to frame much of the conversation at next week’s Federal Reserve meeting.
Yesterday, President Biden announced that the US would ban the importation of Russian fossil fuels, meaning the price of gas and oil is likely to rise further.
For more on currencies and currency risk management strategies, please get in touch with your Smart Currency Business trader on 020 3918 7255 or your Private Client trader on 020 7898 0541.
