USD: traders remain cautious in light of continuing geopolitical tensions

It was another day of losses for the dollar yesterday as it weakened against a basket of currencies as concerns over the geopolitical tensions between the US and North Korea rumble on. Investors aren’t panicking just yet, but they are understandably cautious.

With the ECB monetary policy due later today, further streghtening of the euro against the US dollar could happen. This obviously depends on what Draghi and his colleagues say and the tone they adopt, but if history has taught us anything, it is that ECB’s President is often dovish when a more hawkish tone is expected. We will find out later today.

We had the non-manufacturing PMI come in at 55.3 against a forecast of 55.8 which was slightly underwhelming but not enough to dramatically affect dollar movements. Looking to the day ahead, we have unemployment claims and crude oil data set for release.