Dollar sell-offs, Zuma resigns & talks of a transitional Brexit
A stronger-than-expected set of inflation data out of the US on Wednesday was not enough to prevent the Dollar falling for another day, with the greenback slipping to its lowest level in over a week.
Headline inflation in the US experienced its largest monthly increase in over a year in January, reinforcing the view that the Federal Reserve could raise interest rates on as many as four occasions in 2018. Prices rose by 2.1% in the first month of the year after investors had eyed a slowdown to 1.9%, while the core measure also came in unchanged at 1.8% versus the 1.7% consensus. Investors bought the Dollar off the back of the news, temporarily sending the greenback around half a percent higher. This, however, proved shorted lived and the currency failed to hold onto its gains, losing ground as the session went on to end the day comfortably lower. News out of the US yesterday was a bit of a mixed bag, and the release of a disappointing set of retail sales figures were partly to blame for the currency’s retrace. Sales actually fell in January by 0.3% after investors had eyed a modest increase, raising concerns over the strength of domestic demand in the New Year. A host of economic data releases in the US, including the latest industrial production numbers, have the potential to shift the greenback today.