Prior to the release of the latest minutes from the Federal Reserve’s Open Market Committee (FOMC), the US dollar had struggled for direction. Post the meeting there was only one direction and that was for US dollar weakness as the minutes showed that the FOMC were worried about the state of the world economy and its knock on effect on the US economy, thereby dampening hopes of a US interest rate rise any time soon.
Today returns to the labour market for support, as the unemployment claims figure is due for release. While last week’s headline figures had been impressive, the secondary figures had alluded to a slightly more varied view of the sector. As such, investors will be keen to hear further support for the labour market, as it is a crucial area for interest rate rises as well. This is the only influential physical release during the day day, while later in the evening there will be a member of the Federal Reserve speaking to add to last night’s revelations.