Currency Note US Dollar

US dollar buoyed by minutes of FOMC meeting

By Smart Currency November 21st, 2013

The US dollar had a mixed day yesterday as economic data and the Federal Reserve’s monetary policy pulled the currency in different directions. Federal Reserve Chairman Ben Bernanke backed up comments from Janet Yellen, Federal Reserve Chairman elect, by indicating that monetary stimulus would not be removed without significant supporting data showing an improving economy. That being said, one member of the Federal Open Market Committee (FOMC) suggested that a December start to taper off the quantitative easing program was still on the cards. Alongside this, there were multiple data figures for investors to consider. Retail sales figures showed better numbers than anticipated, while existing home sales came in below expectations which weakened the US dollar. Yesterday evening ,the minutes from the latest FOMC suggested that a taper was still likely in the coming months and therefore a December taper could still be on the cards, but, at the same time reiterated that even if the unemployment level falls below the 6.5% target, this will not automatically lead to an interest rate hike. Today, inflation data is released in the form of the producer price index alongside the manufacturing index from the Philadelphia Federal Reserve and the weekly unemployment claims figures. As always, investors will keep a close eye on any labour data as it is one of the most important factors the FOMC will consider before tapering of the Federal Reserve’s quantitative easing program. Get in touch with your trader for the latest us dollar rates.