The US dollar had a largely uneventful time yesterday, experiencing a slight decline against most currencies, though it was ultimately little changed against sterling and the euro. The slight losses were curbed following job openings figures from the US coming out better than expected. Given the importance of the labour market, positive data from this sector will continue to inject optimism in to investors’ minds, especially with the ongoing question of when interest rates will be raised.
The most important event of the week will happen this evening, when the minutes from the latest US Federal Reserve meeting will be released. Investors will look for clues as to when we could see the US Federal Reserve raise interest rates, if the minutes produce a clear indication as to when rates might go up, you can expect a significant reaction in the market. Aside from this, there is little in the way of physical data due out today to affect the currency’s strength; as a result, speculation surrounding this evening minutes release will likely dictate the US dollars relative strength throughout today.