The US dollar had a strong day yesterday, rising on the back of signs of economic recovery. With the housing market showing figures that were better than expected, the US currency rose to the highest point in nine months against the euro , while extending its four month best price against sterling. This was thanks to the house starts release, which showed the number of residential buildings started in the last month at its highest in eight months – this added to optimism that helped to strengthen the US economy.
Meanwhile, the inflation figure remained steady, as investors ponder the possible timescales of a US interest rate rise.
Today is another important one for the dollar, albeit not in terms of physical data. This evening holds the release of the latest meeting minutes from the US Federal Reserve. Given the continued positivity from the country, investors will be keen to hear the members’ thoughts. They will also be looking for any indication as to future policy and interest rate decisions.