This week started slowly for the US dollar, as a lack of economic data led to a slight fall in the currency’s performance. With little support for interest rate rises, the currency stumbled, although job openings figures followed last week’s impressive labour data with a better-than-expected result.
The main event for the dollar came mid-week, as the US Federal Reserve released the minutes from their latest meeting. This showed some negativity which saw the dollar fall against the majority of its partners including a one cent plus fall against sterling. The sentiment was one of worry over the world economy, the strength of the US dollar and its knock-on effect on the US economy. As a result, hopes of an early interest rate rise were calmed, after they had been increasing with the recent positive data. Yesterday then continued with reaction from this, but the dollar managed to regain some of the lost ground. A solid if unspectacular result from the labour market helped to steady the ship, with the unemployment claims coming as expected. Later today two members of the Federal Reserve are speaking and their comments will be closely scrutinized.