U.S. Economy

The Federal Reserve has little incentive to step back from its fast paced interest rate hiking cycle after its favoured measure of inflation comes in above expectations.

"Growth momentum is undoubtedly weakening amid headwinds such as rapid policy tightening"

On a day of PMI data releases it is the UK which has surprised positively while the Eurozone and U.S. have all delivered sizeable downside surprises.

The Eurozone economy faces significant supply challenges, but demand in the U.S. economy will be squashed by a very active Federal Reserve to the extent that a recession is now likely in 2023.

"One day, a recession will come, but the current evidence points to upside not downside," says Stephen Gallagher, Head of Research for the Americas at Société Générale in New York.

The Dollar jumped after U.S. inflation figures for April came in stronger than the market was expecting.

A powerful GBP/USD sell-off was meanwhile arrested near 1.2436, with the EUR/USD consolidating at 1.04.

U.S. 10y treasury yields are getting closer to 3% – a level not seen since late 2018.

The GBP to USD exchange rate rose to 1.3040 after U.S. core CPI inflation rose 0.3% month-on-month in March, down on the 0.5% printed in February and underwhelming against the 0.5% the market was looking for.

Forecasters remain confident that inflation is still likely to begin falling around Spring time.

The Dollar jumped on the release of U.S. inflation data that came in stronger than expected.

The Dollar jumped against the Pound and Euro after the U.S. reported 467K jobs were created in January.

The Pound to Dollar exchange rate pushed to its highest level since November 04 after the U.S. Dollar extended a run of losses following the release of U.S. inflation data.

The U.S. Dollar looks set to lose further value to the Pound in the wake of a below-consensus U.S. jobs report according to an analyst we follow.

“The inflation data will be even worse by the time asset purchases end in March.”

The Dollar pushed higher against the Euro, Pound and all other major currencies in the wake of the release of U.S. inflation data that showed prices were rising at rates last seen in the early 1990s.

USD in broad losses after Q3 GDP misses expectations and consumer spending eases from extraordinary Q2 level.

The "Dollar stays warm as inflation runs hotter," is the verdict of one foreign exchange analyst following the release of U.S. inflation numbers for September.

A surprise rise in Americans signing on for jobless benefits has triggered a bout of Dollar weakness.

The Euro-to-Dollar exchange rate rose following the release of U.S. inflation data that came in below investor expectations.