Currency Note US Dollar

Interest rate decision contributes to US dollar strength

By Ricky Bean December 18th, 2015

It was a busy week as sentiment continued to support the US dollar. The week started with consumer inflation data being released as expected, with no growth in the inflation rate. But it wasn’t until Wednesday evening that we saw the US Federal Reserve interest rate decision, where the all members of the Federal Open Market Committee voted in favour of an interest rate rise. This was seen as underwhelming, with the minutes that followed suggesting that the US Federal Reserve will take its time in raising rates, distancing itself from more aggressive movements in 2016.

Today we have the release of a Services Purchasing Managers’ Index, which is expected to show mild growth in the sector. Federal Reserve member Jeffrey Lacker also speaks, the first to do so since the interest rate decision announcement on Wednesday.