The US dollar had a stronger day yesterday, making gains ahead of the Federal Reserve’s meeting. Despite a lower-than-expected inflation reading, the currency rose from its recent four-week lows, thanks to speculation over events and outlook from the meeting. While the official line from the Federal Reserve has been US rates will not rise for ‘considerable time’, there was some expectation in the markets that this phrase would be removed, hinting at nearing interest rate rises. The phrase was removed but replaced by a phrase that stated that they would be “patient” when considering an interest rate rise which thereby avoids any undue commitment.
Today keeps up with the steady stream of data, with two potentially influential releases. The first of these comes in the form of the ever-important labour market, with the weekly unemployment claims. Following this will be the Manufacturing Index from the Philadelphia Federal Reserve; these will be the main points of note for investors, alongside continued reaction from last night.