Dollar at 3 week highs
The U.S. dollar added to its rally this morning from yesterday’s news that Federal Reserve Chairman Jerome Powell is positive on the U.S. economy and staying the course with raising interest rates possibly four times this year. This has led the Dollar Index to a 3 week high, a value not seen since mid-January.
In economic news today, U.S. GDP figures matched estimates showing the economy grew 2.5% in the fourth quarter of 2017.
Euro inflation and Brexit uncertainty
Eurostat’s February flash inflation numbers showed a drop to 1.2%, roughly in line with expectations. EUR/USD has fallen to a six-week low as slowing euro zone inflation reiterates the European Central Bank’s caution in removing their stimulus package. Italian political developments are also keeping euro investors on edge, as the national election is set to take place on Sunday.
Pound continues to be weighed down as the EU is ready to publish a draft Brexit document. This added uncertainty has sterling falling 0.7% against the dollar this morning.