Yesterday started with the dollar clawing back some of the strength it lost last week. This upturn was due largely to US durable goods data, which were reported as relatively better than expected, at -1.2% compared to the market projection of -3.0%. However, this was shortly counteracted with worse-than-expected Purchasing Managers’ Index (PMI) figures, released at 54.4 compared to market projection of 55.1, and poor consumer confidence data, released at 97.6 despite a market projection of 102.9. This has caused some weakness within the dollar and caused it to trade narrowly against sterling.
Today there is no significant data released throughout the day, but this evening could see significant movement, given that the Federal Open Market Committee (FOMC) is due to deliver its interest rate decision. No change is expected but the rhetoric used for the announcement will be very carefully scrutinized for any hints as to when they could start to be increased.