Despite being weaker against the pound and euro, the dollar is edging higher against a basket of currencies this morning ahead of US inflation data this week.
December’s inflation rate will be revealed on Wednesday, which is expected to rise about 7% year-on-year. This could provide fresh impetus for the Federal Reserve to hike interest rates earlier than expected. There will also be speeches from several Fed officials after the event and the markets will be listening closely for comments about monetary policy.
The week will finish with the release of US retail sales for December, which are expected to show a decline due to surging Omicron cases.
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