US Dollar Rises Ahead of Fed Rate Hike Expectations
The US dollar strengthened ahead of an expected interest rate hike from the Federal Reserve later this week. The 'greenback' also benefited from a risk-averse market mood, with developments in the Middle East weighing on sentiment.
The pound struggled to establish a clear direction as investors awaited several high-impact releases scheduled for later this week, including the UK's latest jobs report. Despite indications that the labour market remains broadly stable, the pound slipped this morning.
The euro was pressured by its strong inverse relationship with the US dollar and a lack of economic data from the Eurozone. Attention turns to Germany's latest ZEW economic sentiment index today, which could help the euro recover some of its recent losses.