020 7898 0500The US dollar lost some of its recent gains yesterday, having reached its highest level for some time against the vast majority of its trading pairs in the past few days. Its falls were capped today as retail sales and the NY manufacturing index unexpectedly turned positive, helping limit the downside for the dollar however it is still close to 11-month highs against the Dollar Index.
The encouraging retail sales figures revived some selling in bonds and reinforced the idea that the Federal Reserve will raise interest rates on 16th December, which has helped to cap the recent losses for the dollar.
The Federal Reserve’s Stanley Fischer spoke overnight, with the market listening carefully for any clues of potential rate hikes on 16th December. Currently the market has seemly made a U-turn and are now taking a view that President Trump will be favourable for the dollar in 2017.
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