The mighty dollar is back!
The fibre plunged by almost 75 pips yesterday following the publication of upbeat US GDP figures. Earlier today German import prices as well as retail sales and French consumer spending were published in the green spectrum. However, Eurozone yearly CPI and core CPI came out below expectations at 5.5% and 5.4% respectively and these inflation data further pressured the EUR/USD down and the pair is currently trading at 1.0842.
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The market sentiment has renewed with hawkishness backed by the strong fundamental of the US economy and the bolstering message of Fed chair Powell in favour of further rate hikes coming up in order to tackle strong inflation. Meanwhile, analysts on the conservative side are hinting at risk of recession, by hinting towards yield curve inversion with the US treasury yields on the 10-year note pointing towards 3.89% while that of the 2-year note is currently at 4.92%. US economic growth exceeded expectations of 1.3%, expanding by a whopping 2% annually. Employment data was also encouraging yesterday with merely 239K first-time jobless claims filed for the past week.?The core personal consumption expenditure price index, personal consumption expenditure price index, personal income, Chicago purchasing managers’ index, Michigan consumer sentiment index and UMich’s 5-year consumer inflation expectations are all due today. The mighty dollar is back with the USD dollar index currently trading at 103.44 against similar peers.