020 7898 0500The dollar (USD) dipped to a 6 week low against a basket of currencies on Tuesday, continuing its recent slide from last week, after the US Federal Reserve comments disappointed the market. Broadly the dollar continues to struggle after the Federal Reserve’s statement was less positive than expected. However, the US is the only major economy at present that is raising interest rates, or even considering such action, so the recent sell-off could just be market positioning before the next push for the dollar.
Markets are still waiting to hear more about President Trump’s election promises around taxes, deregulation and infrastructure spending. When – if at all – this information is released we would expect the dollar to embark on another upward rally against other major currencies pairs.
For more on currencies and currency risk management strategies please get in touch with your Smart Currency Business trader on 020 7898 0500 or your Private Client trader on 020 7898 0541.
