The king of the US dollar continued its higher climb in the European session on encouragement from US retail sales data that further strengthened expectations for an earlier interest rate hike from the Federal Reserve (Fed).
U.S. retail sales rose above expectations in October, thus supporting the view that the U.S. economic recovery continues to keep pace with the recent high inflation spike.
The US dollar jumped to a 4 -and -a -half -year high against the Japanese yen, which was also affected by a 10 -year rebound in US treasury yields.
Meanwhile, the already weak euro was pushed below the 1.1300 price level against the greenback, bringing it to its latest low in today's trading session.
Being the next investor focus in the New York session, is the publication of Canadian inflation data which is also expected to record an increase in October. During the European session, the Canadian dollar traded at its weakest level in five weeks against the USD.
Earlier, investors were shown with UK inflation data rising the highest since December 2011. The pound initially rose as an initial reaction but its movement was hampered by the strong USD, causing it to remain traded around the same price at 1.3430.
Overall, the dollar index strengthened at around 95.95, hitting its latest high since July 2020 against most major currencies.
