The US dollar also affected by ‘Black Monday’

The US dollar was one of the major currencies affected by the fear factor surrounding the struggling Chinese economy on Monday. The huge trading and investment links between the US and China encouraged investors to leave the US dollar and flock to safer currencies such as the euro and Japanese Yen. This led to the US dollar continuing to weaken against the majority of its peers – and eyes will be on the US Federal Reserve to see if this changes their sentiment as to when they should look to raise interest rates.

We could possibly see yesterday’s weakness reversed today with some key data released to influence the markets. Fist up, we have the Flash Services Purchase Managers Index (PMI), which is expected to show continued growth and then shortly after we have consumer confidence figures which are also expected to be positive.