Dollar jumps, U S stocks buck global rally streetinsider.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from streetinsider.com Daily Mail and Mail on Sunday newspapers.
Data on U.S. payrolls this week is expected to show the labour market remains tight, while EU consumer prices could show some slowdown in inflation as energy prices ease. "Energy base effects will bring about a sizeable reduction in inflation in the major economies in 2023, but stickiness in core components, much of this stemming from tight labour markets, will prevent an early dovish policy 'pivot' by central banks," analysts at NatWest Markets wrote in a note.
The U.S. dollar firmed ahead of Wednesday's release of the minutes from the Federal Reserve's last meeting, with expectations they will signal more policy tightening is in store. A higher dollar walloped oil prices, which also took a beating from concerns about slowing global economic growth, especially after data showed China's factory activity shrank in December.