The safe-haven dollar touched a 16-month high versus its main counterparts on Monday. It was pushed by concerns about global growth and inflation, as well as monetary policy expectations. Investors anticipated data on consumer strength in the United States this week.

Dollar $

The dollar rose on Wednesday. This was after data showed that consumer prices in the United States rose at the fastest annual rate since 1990. All this casting doubt on the Federal Reserve’s view that price pressures are temporary. Fuelling speculation that interest rates will be raised sooner than previously thought.

“I feel like I’m trading in the 1990s when everyone was focused on what the Fed was going to do,” said a senior analyst at FXStreet.com.

It’s been a long time since we’ve seen a significant movement of comparable sovereign rates. And that appears to be where we’re headed. On Monday, the dollar index, which measures the currency against six rivals, reached 95.462. It’s the highest level since July 2020 and was last up 0.274 percent at 95.394.

On Friday, demand for the dollar weakened. This was because a study revealed that consumer morale had plunged to its lowest level. It’s the lowest in a decade. Owing in part to a jump in inflation. However, it firmed again on Monday. As policymakers in Europe and the United Kingdom expressed concerns about growth and prices.

On Tuesday, investors will be looking for hints about the dollar’s future direction. This will be in the form of retail sales data from the United States. According to a Reuters survey, retail sales are estimated to have increased by 1.1 percent last month.

Following the consumer mood report, all eyes will be on retail sales in the United States tomorrow. To see if the decrease in consumer confidence is mirrored in retail sales.

EURO

Gains in the highly euro-weighted dollar index have also been aided by a drop in the single currency. This comes with European Central Bank President Christine Lagarde continuing to oppose market expectations for tighter policy.

Supply-chain bottlenecks and surging energy prices are delaying the eurozone economy. And it will keep inflation high for longer than previously predicted, according to Lagarde.

The euro EUR=EBS fell to a 16-month low versus the US dollar. Closing down 0.49 percent at $1.13865.
The euro plummeted to its lowest level versus the Swiss franc in 18 months. It finished 0.17 percent down at 1.0524.
Interest in the euro/Swiss franc cross has increased substantially. Since the Swiss franc is a natural hedge against inflation.

FRANCS

Mild Swiss inflation, at roughly 1.2 percent per year. It was limiting the franc’s ascent. Swiss National Bank however is committed to currency market interventions. It is to minimize, the impact of the Swiss franc’s strength on Switzerland’s export-oriented economy.

STERLING

In the United Kingdom, the pound GBP=D3 climbed 0.16% to $1.3429 to begin a data-heavy week. It’s the week in which employment, inflation, and retail sales figures are likely to give hints on whether the Bank of England would hike interest rates in December.The

The Sterling fell to its lowest level this year against the US dollar on Friday.