The dollar is stronger against a basket of currencies this morning, despite being weaker against the pound and euro.
This followed a testimony from Federal Reserve Chair Jerome Powell yesterday, where he said that the economy was strong enough to cope with interest rate hikes. However, he also said that Fed officials were still debating their plans on reducing the central bank’s balance sheet and didn’t give any details on when this will start.
Today, inflation figures will be released for December, expected to rise about 7% year-on-year. This could provide fresh impetus for the Federal Reserve to hike interest rates earlier than expected.
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