The US dollar continued to maintain its strength despite a slight retreat from a 20 -year high as the market headed towards the end of trading this week.
The king of the currency is also on track for a third consecutive week of gains as investors raise expectations the Federal Reserve (Fed) will implement a large-scale tightening at a policy meeting that will take place two weeks later.
This follows a shocking reading in U.S. consumer inflation data that jumped higher to 9.1% in June, and producer prices also strengthened with a 1.1% increase.
Even so, investors had to set aside expectations for a 100 basis point increase after Fed policymakers Christopher Waller and James Bullard said they preferred a 75 basis point increase.
The statement caused the greenback dollar to trade slightly from the new high it reached on Thursday.
Meanwhile, market sentiment remained gloomy amid concerns of a recession, especially after Chinese economic data showed that Gross Domestic Product (GDP) in the second quarter of 2022 was slower than expected.
This has caused the Aussie and New Zealand dollars to struggle to advance to record gains amid the weakening US dollar.
Moreover, euro trading tried to resist falling lower against the US dollar, while the pound continued to hover at a two -year low.
The US retail sales data to be published in the New York session will be the focus of investors to determine the direction of the next currency market.
