The Dollar rose against all barring two of its G10 rivals Monday as investors responded to claims that two of the world's top economies are contemplating fiscal stimulus at a time when the global economy is wounded and weakening fast, although much about the future direction of the U.S. currency will be determined in the weeks ahead by the Federal Reserve (Fed).
The Pound-to-Dollar rate is on the verge of a "new and stronger" uptrend that could see the bulk of Sterling's post-referendum losses ironed out, according to analysts at CMC Markets, although other firms are warning that fresh losses could blight the British currency in the weeks ahead.
The Dollar was rose against almost all of its developed world rivals Thursday after retail sales figures surprised strongly on the upside for the month of July, boding well for growth in the third-quarter and suggesting U.S. consumers are yet to receive the recessionary memo now coming from the bond market's so-called yield curve.
The Pound-to-Dollar rate handed back earlier gains Wednesday after the outlook for the global economy appeared to darken further when the U.S. bond yield curve inverted for the first time since the financial crisis, herding investors toward the greenback and other so-called safe-haven currencies.
The Dollar surged higher Tuesday, taking many so-called risk assets from across global markets upward with it, after the U.S. Trade Representative said it would scale the list of Chinese products due to be subject to new tariffs in September.
The Dollar rose modestly in noon trading Tuesday after official data revealed a surprise increase in inflation for June, which could limit the extent to which the Federal Reserve (Fed) is willing to further reduce its interest rate during the months ahead.
The Pound stabilised early in the new week but nascent stability will soon give way to renewed losses, according to analysts at Westpac, who forecast the British currency will hit a new post-referendum low over the coming months even if parliament is succesful in preventing a 'no deal' Brexit.