020 7898 0500The US dollar didn’t perform very well again yesterday, weakening against sterling and the euro. It fell to a 23-month low against the single currency.
However, it wasn’t all doom and gloom, as US consumer confidence hit its second highest level since 2000. It jumped to 121.1 this month from 117.3 last month, which is a four-month high. This was against Wall Street expectations of 116.5.
Later today we have the release of the notes from the FOMC meeting. If the Federal Reserve strike an optimistic tone then we could see an interest rate hike in September which could offset some of the recent weakening of the US dollar against the euro. On the other hand, a cautious FOMC would likely see the euro making further gains and perhaps even breaking through the highs of yesterday.
