US inflation figures were released yesterday, showing only a modest rise in core inflation. This put pressure on the dollar, which maintained a weak position against the pound and the euro. This occurred despite the pound suffering from volatility yesterday, due to a poor assessment of May’s backstop assurances and the increasing likelihood that her deal would not make it through Parliament.
It is the lowest US inflation rate since September of 2016, mainly due to a fall in cost of gasoline and clothing while prices of electricity stalled. The poor inflation figures supported expectations that the Federal Reserve will hold off from increasing interest rates this year.
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