Tuesday was a busy day for the US dollar, as it weakened by nearly half a cent against both sterling and the euro. The main drivers behind this movement were data releases from the UK and news regarding the on-going Greece-Eurozone negotiations. Tuesday’s data releases from the US showed mixed outcomes, with building permits growing and housing starts falling.
The focus in America this week has been the US Federal Reserve meeting minutes and interest rate decision – due today. In the lead up to the statement itself, we expect a lot of movement in exchange rates, with this continuing during the press conference held towards the end of the day. The main spotlight will be on how the Federal Reserve members view the recent data releases, showing positive employment for the US, interest rate levels, and what they deem the appropriate time to increase the key interest rate.