Last week, U.S. annual consumer prices jumped 9.1% in June, the largest increase in more than four decades, leaving Americans to dig deeper to pay for gasoline, food, healthcare and rent.
Euro weakness has been a big part of the dollar index's push higher, with the safe-haven U.S. currency also supported by worries about growth elsewhere too, with China in particular implementing strict zero-COVID policies to contain fresh outbreaks.
Additionally, Euro was under pressure after Italian Prime Minister Mario Draghi offered to resign, but that was rejected by the country's president.
In the upcoming week, watch out for on the ECB Monetary Policy Meeting this week.
The European Central Bank meets on Thursday, in a meeting that is expected to see the bank raise rates for the first time in a decade. The ECB meeting will give markets new guidance about monetary policy outlook. Moreover,
US Housing Starts will be announced Tuesday and it is a critical indicator of economic strength in the US. The market expects housing to start to rise to 1.585 mln from 1.549 mln.
US Building Permits as another key indicator of demand in the housing market measure the change in the number of new building permits issued by the government. It is expected to come out at 1.650 mln in June.
18 Jul 22 (Mon)