020 7898 0500The US dollar began on the back foot yesterday but reversed some of those losses later after US economic data put the focus back on a widely anticipated increase in interest rates by the Federal Reserve. Both US initial jobless claims and the Philadelphia Federal Reserve’s Business Index came out positive.
The number of people applying for jobless benefits fell to a 28-year low and the Philadelphia Federal Reserves’ (Fed) business index came in at double economists’ expectations.
US inflation and growth data have been poor in recent weeks, posing the market questions over a US rate hike next month, as well as Trump’s firing of former FBI Director James Comey and possible ties between members of his administration and Russia. However, yesterday pointed to a mini turnaround in the dollar’s fortunes.
All eyes will now be on June’s non-farm payrolls data due in two weeks as the final major hurdle before the Fed sits down for their next meeting.
Today is very quiet for the US dollar as there are no major data releases, and direction will likely come from the other major currencies..
