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.
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