020 7898 0500The US dollar was mixed again throughout the day yesterday, with markets acting a little tentatively ahead of the minutes from the US Federal Reserve meeting. The dollar lost out in a few key areas throughout the day, namely against the euro and sterling. It did gain ground on the Japanese yen, however, as Japan’s political developments impacted on its currency. US data throughout the day had been mildly positive, with the building permits figure coming out ahead of expectations. The main event was the meeting minutes, and these were relatively uneventful, giving minimal hints or insights on when interest rates will be increased.
In addition to this, today holds a number of significant data releases to interest investors. The most influential is likely to be the inflation figure from the Consumer Price Index, given its good link to overall economic health. Alongside this is the unemployment claims, with the labour market also an important sector. Following this will be the Purchasing Managers’ Index from the manufacturing sector, before the manufacturing index from the Philadelphia Federal Reserve. The final data piece will be on existing home sales, to round off a busy and varied day on the data front.
This evening also holds a speech from a member of the FOMC, following last night’s minutes. As such, this glut of data accompanied by continued reaction to last night could spell a busy day for the dollar.
