The U.S. dollar was seen posting strong gains on Tuesday. The rebound came amid the U.S. industrial production rising 0.6% on the month. The Fed Chair Powell started his two-day testimony to the U.S. Congress. In his testimony, the Fed Chair maintained the hawkish rhetoric that the central bank should continue tightening monetary policy.
Elsewhere, the UK’s monthly jobs data showed that the unemployment rate remained at 4.2% while the average earnings increased 2.5% matching estimates but slower than a revised 2.6% from the previous three months.
The UK’s Office for National Statistics will be releasing the inflation report today. Economists forecast that consumer prices accelerated at a pace of 2.6% annually in June. This marks a slight increase from 2.4% seen the month before.
Core inflation rate is expected to rise 2.1%, the same pace as the month before. Data from the Eurozone will see the final inflation figures. Headline consumer prices are expected to rise 2.0% while core inflation rate is tipped to rise at a pace of 1.0%.
The Fed Chair Jerome Powell is expected to continue with his second day of testimony to congress.
