US Inflation

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.

On Wednesday the 13th of April a monthly comparison of Core CPI is forecast to show prices rose 0.2% in March, down from the 0.3% in the previous month.