USD: US dollar at a one-month low, falling 0.3% against a basket of major currencies

It came as a surprise to see the dollar weaken yesterday, following the interest rate hike the day before, after the FOMC gave a dovish tone towards further rate hikes later in the year. Whilst many FOMC members still believe that there will still be two further hikes this year, it’s not knowing when these might occur that seems to have weakened the dollar’s position and caused uncertainty over the pond.

Looking to the day ahead, there is very little in terms of US data, other than the University of Michigan consumer confidence survey at 2 pm. Investors will be keeping a keen eye on this announcement, to gain a better understanding of potential changes to income/wages and to predict drops in consumer spending.

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