The US Dollar has continued its momentum as it hovered near a 13-month high as growing expectations around interest rate hikes by the Federal Reserve continued to climb.

DXY, the dollar index reached a one year high this morning. Touching a level of 101.148, before falling off a little, but still holding a high level, as markets continuing to open across Europe.

The resignation of Keir Starmer has created another period of uncertainty for UK financial markets at a time when global risks remain elevated.

UK Inflation provided some relief this morning as prices rose 2.8% in the 12 months to May, despite expectations Inflation would rise to 3%.

Japan raised its interest levels to a base rate of 1%, its highest levels since back in 1995. It did not come as a surprise, as markets did expect a hike of 25 basis points.

Last week was dominated by the European Central Bank, which delivered a widely expected 25 basis point rate hike but accompanied it with a much more hawkish message than markets had anticipated.

ECB (European Central Bank) did raise their interest rates levels by 25 basis points yesterday. The European interest rate is now sitting at 2.25%, it was the first time since back in 2023 that ECB had to increase its levels, after concerns of increasing inflation levels.

The US Dollar has held its position near a two-month high, as markets and investors assess the implications of fresh US strikes on Iran, as well as stronger than expected inflation for the US.