With the US enjoying President’s Day and no data releases on Monday, market attention will soon turn to what news we can expect from the US later in the week. With minimal data releases today, we look forward to the US Federal Reserve minutes due to be released on Wednesday evening. Investors will be keeping a keen eye out for any interest rate focused comments coming out of these minutes, after being left underwhelmed by Federal Reserve Chair Yellen’s testimonial comments last week, which, along with poor new job data, have fuelled speculation that the US dollar could weaken later in 2016. It appears highly unlikely that the Federal Reserve will raise interest rates in its March meeting, and current predictions for rate rises are at around 50 percent of Decembers expectations for the remainder of the year, offering little support for the US dollar, although the currency currently remains strong against sterling and the euro, its major counterparts.
The US dollar’s fortunes appear mixed in the coming weeks and months – contact your trader today to ensure you have the most up to date rates and market development information to help you plan your currency strategy.