The US dollar continues to advance against its peers as markets remain convinced the Fed will maintain their hawkish monetary policy. The greenback had another strong day on Thursday, pushing into the $1.21 and $1.03 handles against the pound and euro, respectively.
Stronger than forecast inflation prints this week have fuelled the greenback’s gains. While the recent moves in the buck appear overstretched, it’s not out of the question to see the trend continue in favour of the US dollar.
As the week draws to a close the economic calendar is light, which very little in the way of market-moving data to watch out for. It’s likely financial markets focus on the macro-outlook as well as monetary policy in this final trading day of the week.
Have a great weekend.
Written by Viv Savani. 8:20am, May 13th 2022
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