Fed’s comments still under analysis
The greenback is once again under pressure this morning, as investors mull over the various comments that Fed members continue to make. In short, Fed officials are insisting that the U.S. economy will be able to support a strong dollar and that rate hikes remain on the menu.
Although everything appears to indicate that they will eventually be proven right, markets seem hung up on the short term, and are delighted this morning with the announcement that the eurozone PMI has climbed to its highest level in four years. Since last week, the euro has gained 4.5% despite a relatively unchanged European economic climate.
This morning, U.S. inflation will be announced at 8:30. From all appearances, the reading will once again confirm that inflationary pressures are largely under control.
