US dollar on track for eight-straight weekly gain

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Rising oil prices, concerns about inflation and hawkish Fed comments led to an eight-week win streak for the US dollar, says Axel Rudolph, Senior Market Analyst at online trading platform IG.

US dollar longest win streak since 2014

“Fears about persistent inflation, driven by rising oil, gas and food commodity prices such as sugar (12 year high) and cocoa (46 year high) raise fears of the Fed having to hike its rates once more. This and the fact that the rest of the global economy is facing a tougher outlook, make the greenback a safe haven, and have led to its longest win streak since 2014.”

Stock indices end week in the red

“Despite regaining some of this week’s lost ground on short-covering trades, most global stock indices end the week in negative territory as the odds of further monetary tightening are increasing. Next week’s US CPI and the European Central Bank’s (ECB) rate decision are likely to give investors further clues as to the future path of monetary policy.”