It wasn’t a great start this week for the dollar, thanks to poor data releases: Monday saw both the Final Services and ISM Non-Manufacturing Purchase Manager’s Indices (PMI) released at a decreased level month-on-month – along with the Trade Balance figures, which were also disappointing and showed increased imports from China. The weekly unemployment claims figures released on Thursday showed some positivity – but this failed to give the US dollar any strength as investors awaited the US Federal Reserve Meeting Minutes.
These Minutes further undermined the US dollar as they seemed to favour caution as to when to start increasing US interest rates given worries over the global economy. Sterling has gained over two cents against the US dollar but is still a long way from the US$1.60 level.
Import prices released today are expected to show yet another negative figure, as the US dollar remains relatively strong. Federal Reserve members Lockhart and Evans both speak today, which, following yesterday’s Meeting minutes, could give greater insight into the members views.