The dollar has strengthened against both the pound and the euro this morning.
US inflation fell to 8.3% year-on-year in April. While this was a decline on March’s 8.5% figure, it was still higher than the predicted fall to 8.1%.
This has increased expectations that the Federal Reserve will introduce more aggressive interest rate hikes in the coming months.
Later today, we will see PPI figures for April which are expected to have fallen from 1.4% to 0.5%. The number of Americans who filed for unemployment benefits last week will also be released this afternoon.
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