Tuesday was not a positive day for the US dollar as it weakened nearly a cent against both sterling and the euro. This can be attributed to weak trade balance figures, which came out at a five month low. As a result of this figures, many banks lowered their third quarter Gross Domestic Product (GDP) forecasts.
With very little data today, investor attention will turn to Thursday’s US Federal Reserve meeting minutes and how the members view the likelihood of a possible interest rate rise before the end of 2015. Expectation is now firmly that this will take place next year, so it will be interesting to see if members are split on this view.