USD: Dollar stays firm with little data and rate decision expected

Though positive housing data out of the UK could have pushed strengthened sterling against the US dollar, it appears the US dollar remains strong ahead of the Federal Open Market Committee (FOMC) interest rate decision on Wednesday next week.

The currency has been driven by events around it, with the ECB decision today to extend its QE programme driving the EUR/USD exchange rate. Data has taken a back seat, but unemployment claims did come out as expected today. All eyes are firmly on next week and the interest rate decision. The question remains whether a small interest rate hike by the Federal Reserve has already been priced in.

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