Uncertainty over tapering and debt ceiling undermine the US dollar

The US dollar didn’t get off to a very good start to the week, as reaction to the tapering revelations continued. Words from a member of the Federal Open Market Committee further impacted on the currency, as he supported the decision to not reduce the bond buying levels. Worse than expected flash manufacturing data also undermined the dollar. Things picked up on Tuesday, after more member of the FOMC spoke, and prompted speculation that tapering was actually more likely to be implemented sooner. Wednesday was quiet, as most data including the new homes sales was in line with expectations. Positive unemployment levels helped the dollar yesterday, especially as this is closely linked to whether this will get started soon. Today, the most important event is another speech from a member of the FOMC, and his words could decide how this week finishes. Call your trader now for the latest on the US dollar, while tapering decision keep investors guessing.