LONDON: Stock markets rose and the dollar retreated Monday as investors turned their attention to US inflation data later this week and weigh the prospect of further monetary policy tightening.
The dollar was weaker as investors took profit on the strong gains notched up last week on speculation that the US Federal Reserve will announce a third successive rate increase of 75 basis points in September.
“The macro calendar is quiet this week with US inflation data being the main highlight,” said Forex.com analyst Fawad Razaqzada.
“This will keep the dollar... in focus after a very strong US jobs report on Friday rekindled the possibility of a hat trick of 75-basis-point rate hikes in September.” Data due Wednesday are expected to show inflation in the world’s biggest economy slowed slightly in July, but remained close to the four-decade highs seen recently.
Oil prices gained, making good some of the losses from last week, when a rise in US crude stockpiles was partly responsible for a 10pc drop in prices.
Published in Dawn, August 9th, 2022
