The US dollar had a largely positive day yesterday, thanks more to global revelations than internal changes . The main event driving the dollar higher throughout the early part of the day came from Singapore, as they joined the list of Central Banks who had eased their monetary policy. With this showing further divergence in central banks across the world, the dollar rose thanks to their own central bank’s current strength.
Overnight we heard the latest from the Federal Reserve with regards to interest rates, and this showed no change in interest rates or in sentiment from the previous meeting with the economy doing well and a wait and see approach to inflationary pressures.
Today then brings just the one piece of significant data, unemployment claims from the labour market. This is an important indicator given the influence that the labour market will have on the Federal Reserve’s decision on interest rates and policy. This may be supported by pending home sales, with investors looking for any signs of a healthy economy, alongside the continued reaction and digestion of last night’s meeting.