The US dollar had a quiet but negative day yesterday, losing some ground against the majority of its most traded partners. With US markets closed in observance of Veterans Day, there was no data from stateside to affect the currency’s performance. It was therefore down to outside influences to drive the markets. With this in mind, the dollar struggled to find any support throughout the day, aside from against the Japanese yen. With speculation over possible early elections in Japan weakening the yen, the dollar moved to its strongest level in seven years against it.
Moving on to today, activity on the US side is still limited. The 10-year bond auction is billed as the most significant release for the day, but is unlikely to have any major impact. Elsewhere there is a speech due from a member of the US Federal Reserve. This could be the most important event of the day, depending on his words. With the recent varied economic results and subsequent opinions over interest rate rises, investors continue to look for any clear indication as to their plans, and so any clues from this speech could affect the dollar’s performance.