15, August 2006
Pending US Inflation News Does Not Affect Dollar
In London trading the dollar rebounded from two-month lows once again versus the euro ahead of news regarding US inflation which is due out later this week. While the greenback managed to reclaim lost ground at the end of last week as solid economic news sparked talks of another interest rate hike from the US Federal Reserve in September, traders are still cautious due to the volatility of the market. Some strategists are saying that the upward correction of the dollar is not yet complete and suggesting to keep an eye out for further upside potential. Rate hike expectations are constant in the market, and had increased after the release of strong US July retail sales data.
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