The US dollar saw further positive movements throughout the day yesterday, thanks, largely, to speculation ahead of last night’s minutes from the latest US the Federal Reserve committee meeting. After a prolonged period of strength from the US, both in its economy and its currency, the speculation over interest rate rises stateside has been intensifying. Following this, investors’ hopes that policy makers would give a stronger indication that they would move towards a rise in interest rates helped push the dollar to its best level in 11 months against the euro. When the minutes came round in the evening, they showed that the committee had moved closer to raising interest rates than expected which helped the US dollar strengthen across the board.
Today holds some further data points to interest investors, starting off with the unemployment claims figure. The labour market is a key area for policy makers; as such, results in this area could prove crucial to the performance of the US dollar. Following this, the Manufacturing Index from the Philadelphia Federal Reserve will provide further opportunity for reactions. Continued responses to last night’s minutes will also remain an influence.