The dollar strengthened yesterday and is still strong this morning following the release of the inflation rate figures for the US. Core inflation rate came in at 4.5% and annual inflation was 5.4% for June.
These readings were both above market expectations, with annual inflation rate hitting a fresh high since August of 2008 and core inflation rate showing the largest 12-month increase since 1991.
Investors will be looking out for any comments from Federal Reserve Chair, Jerome Powell, when he testifies in front of Congress today and tomorrow. It is thought that these inflation readings will not cause the Fed to stray from their view that higher inflation is transitory.
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