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A stack of evidence is piling up that the global economy is heading for a spike in inflation say analysts, as logistical challenges and the rising cost of raw materials converge.
U.S. inflation rose by more than expected in March, but the beat on expectations was not enough to propel the U.S. Dollar higher in a sign that markets might have already discounted rising inflation over future months.
The Dollar went from hero to zero on Wednesday when in the metaphorical terms the U.S. inflation picture effectively bombed at the box office, after February's inflation numbers came in lower than was expected by economists and in the area where where it really mattered most that they didn't.
The U.S. Dollar cemented its position as the best performing major currency of the week on Wednesday after December inflation figures offered fools' gold to investors, in the process appearing to revive concerns about a possible 2021 tapering of the Federal Reserve's (Fed) quantitative easing programme.
The Dollar was in fresh retreat from a majority of rivals Wednesday after a short-lived rebound bit the dust ahead of the North American open when U.S. inflation figures surprised on the upside, likely aggravating investor concerns about declining inflation-adjusted returns and stoking demand for precious metals.
The greenback capitulated at range highs before slipping lower on Tuesday after inflation data surprised on the downside for the month of February, vindicating investors for having bet earlier this year that an end to the Federal Reserve (Fed) interest rate hiking cycle is nigh.
The Dollar rose broadly on Wednesday after official data showed inflation pressures remaining elevated early in the New Year and as markets responded positively to President Donald Trump's suggestion that he might be willing to give negotiators more time to end the U.S.-China trade war.
The Dollar slumped Friday following the latest commentary from Federal Reserve (Fed) policymakers and after inflation data voiced support for the bank's new narrative that it can afford to be "patient" before hiking U.S. interest rates again.
The U.S. Dollar appeared to shrug Wednesday when official data revealed that U.S. inflation pressures remained elevated during October, although recent developments in oil markets mean the outlook for price pressures has cooled of late.
The Dollar extended losses Thursday after official data revealed a surprisingly sharp fall in inflation during September, which places a question mark over the extent to which price pressures will compell the Federal Reserve (Fed) to keep raising interest rates over coming months.
The Dollar handed back previous gains to be seen swathed in red Thursday after inflation data surprised on the downside for August, reinforcing an earlier downward bias arising from signs of a fresh detente in the US "trade war" with China.
Champagne corks could be heard popping in Washington today after data showed US inflation finally clawed its way back above a landmark level.
The US Dollar surprised commentators mid-week by falling despite rising US inflationary rates. What is going on and what does it mean for key US Dollar-based exchange rates?
GBP/USD sold off after the release of January US inflation data showed price gains held onto their strong growth rate at the start of 2018.
Treasury yields and the Dollar were both lower overnight after the Fed left markets underwhelmed.
The release of important economic data in the US later today has the potential to impact on Dollar pairs as it may influence expectations about US monetary policy, which is a major driver of exchange rates.
Markets have been pricing a near 80% chance of a Federal Reserve rate hike in December, despite persistent downward pressure on inflation. Friday's data could mean markets may now begin to question the wisdom of the Fed going ahead with a rate hike.
The GBP/USD exchange rate fell by close on a percent while the US Dollar index was sharply higher following the release of stronger-than-forecast US inflation data.
Data showing a slowdown in US inflation failed to rattle the dollar on Tuesday as housing stats released at the same time was relatively strong.
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