The US Dollar has virtually started the new week where it finished off last week. Treasury Bill auction data released yesterday helped to boost the US dollar, but not far, as Bank of England (BoE) Governor Mark Carney re-iterated that a UK rate hike is edging closer. However, Carney also stressed that deflation remains a counterbalance to a potential rate rise.
Interest rates remain an underlying influence. With little data of note this week, save unemployment claims and indication of manufacturing inflation, the US dollar is likely to be influenced by events elsewhere, such as the situation in Greece, or poor economic data from China – any discouraging news from either region could see investor flocking to the safety of the safe-haven US dollar.