U.S. Economy

The Dollar strengthened against the Pound, Euro and other major currencies after the release of data that showed U.S. inflation accelerated in December.

Independent economic data aggregator Truflation says U.S. core inflation is becoming "entrenched" amidst a strong labour market and investors should not rule out interest rate hikes.

The Dollar has risen in reaction to the release of November's U.S. inflation data showing a 0.1% rise month-on-month in headline CPI, an increase on October's 0% print and larger than the flat 0% reading the market anticipated.

Another above-consensus U.S. labour market report has propelled the Dollar higher into the weekend.

The Dollar was firmer against the Pound and other major currencies after a survey of the U.S. economy showed continued growth in November and cautioned market participants against overzealous Federal Reserve interest rate cut expectations.

A broad-based decline in the Dollar has followed news that more Americans lost their jobs and sought out-of-work benefits than market participants were expecting.

GBPUSD went back above the 1.23 level and approached 1.24 following the release of U.S. inflation data for October that showed inflation in the world's largest economy had softened more than the market was expecting.

The Pound to Dollar exchange rate rose by over a per cent to retake 1.23 and further improve its short-term setup following the release of U.S. labour market statistics that disappointed against expectations.

Betting against the Dollar could remain a futile endeavour given the relentless outperformance of the U.S. economy, confirmed by the latest quarterly GDP print.

The Dollar strengthened after PMI data signalled the U.S. economy expanded in October, in contrast to those of the Eurozone and UK.

Pound Sterling fell sharply following the release of U.S. inflation numbers that beat expectations although the scale of the surprise was relatively limited which suggests losses can be contained, if not reversed over the near term.

The Dollar surged alongside treasury yields and stock markets tanked after the U.S. reported a surprisingly strong jobs report for September, raising the odds of further hikes at the U.S. Federal Reserve ahead of year-end.

GBPUSD could be on course to snap a run of weekly losses if the gains made in the wake of the U.S. PCE price index are held.

Pound Sterling risks breaking to fresh three-month lows against the Dollar if U.S. inflation beats expectations later today, but recent history suggests the U.S. currency tends to weaken following inflation releases.

Labour market figures show the U.S. economy continues to add jobs at a strong pace, although further signs of a slowdown were apparent in the August data released on September 01.

The Pound to Dollar exchange rate is looking to make it a third successive day of gains as upside momentum from a surprisingly soft U.S. data report extends, however, analysts say strength is ultimately likely to prove fleeting for the time being.

The Pound to Dollar exchange rate unwound much of an earlier rally heading into the weekend as financial markets appeared to contemplate what surprisingly strong producer price inflation in July could mean for the measure of inflation most closely watched by the Federal Reserve (Fed).  

Pound Sterling traded higher against the U.S. Dollar following the release of data that showed U.S. inflationary pressures continued to ease in July, boosting market confidence that the Federal Reserve won't raise interest rates again in September.

The U.S. non-farm payroll report has shown a knack of consistently coming in above expectation over recent months, but August's provided a rare downside surprise that appears to have knocked the Dollar in the short-term.

"August dull? Rangebound trading? Not a chance," says Kenneth Broux, a strategist at Société Générale, referencing the shakeup in U.S. bond markets that has in turn fed into a stronger dollar.