U.S Dollar Bulls Steering the Wagon in the Face of Rising Inflation

For the week, the U.S dollar index, primarily used for tracking the dollar’s strength against a basket of six major currencies, posted gains of about 0.6%.

Buying pressures on the safe-haven currency further tamed precious metal’s shine, with gold dropping about 1% in value trading near $1,815 per ounce.

Recent price patterns, DXY bulls are holding support at 92.7 area though they face an uphill battle breaking above 93 index points with U.S Fed Chief, Jerome Powell reiterating that rising inflation was likely to be transitory and that the U.S. Federal Reserve Bank would continue to support the $21.5 trillion economy

U.S. retail sales defied market expectations, as it unexpectedly rose for June with demand for goods remaining rock solid even though spending was drifting towards services.

Dollar bulls are raging on, as a shift in interest rate expectations and solid U.S. data keep the momentum on, particularly after the U.S Central Bank flagged in June sooner-than-expected interest rate hikes triggered record-buying pressures on the greenback in recent weeks as global investors become nervy on shorting it.

In Western Europe, the British pound posted its worst losses since mid-June against the dollar to settle at $1.3767 on Friday.

The British pound sterling continued to struggle against the U.S dollar amid growing market speculation on the Bank of England pausing its bond-buying program early because of an unexpected surge in inflation.