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The Dollar's Travails
The US dollar struggles, despite the Federal Reserve's upgrade of its economic assessment and confirmation that it still anticipates raising rates this year. At the same time, the Greece situation has devolved, and the run on deposits has accelerated, which forced to the ECB to lift its ELA ceiling twice within a couple of days. Sterling drew succor from hawkish central bank comments, firmer than expected retail sales and a jump in average weekly earnings, which offset the slightly softer than anticipated core inflation. Sterling was the strongest of the major currencies last week, rising 2% against the US dollar. ... (full story)