This week, markets have been fixated on rising energy prices and the impact it is having on inflation, and in turn the global growth outlook. The dollar has reigned supreme in this environment, with the DXY index rising to the top of its new range throughout the week as yields are driven higher by breakeven rates. Even the short-term increase to the debt ceiling failed to support the risk environment towards the end of the week ahead of key labour market data from Canada and the US. Next week, the relatively light data calendar focuses on output data in Europe, with euro-area industrial production and UK GDP for August pencilled in, and central bank policies in Asia. While in the US, inflation data occupies the data calendar.
Read our latest Week Ahead here:
Simon Harvey, Senior FX Market Analyst
Ima Sammani, FX Market Analyst
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