There was continued strength for the US dollar yesterday, primarily driven by sterling weakness. This saw the US dollar hit a monthly high against sterling. Crude oil inventories were the only release of note on Wednesday, and these showed a slight increase. Investors were also awaiting the US Federal Reserve Meeting minutes, out last night. These showed that the members were still aiming to increase interest rates this year so long as the actual performance of the US economy matched the Federal Reserve’s forecasts. As these were made before the Chinese stock market crash, the collapse of Greek bailout discussions and the downward pressure on oil prices, these forecasts may prove to be too optimistic which would push back interest rate increases yet again.
The weekly unemployment claims is the only main release expected today. This should show a slight improvement from the previous week’s figures. Recent releases have been positive, so we can expect further positive labour data from the US. US Federal Reserve member Brainard also speaks, with the expectation to elaborate on yesterday’s Federal Reserve meeting minutes.