The US dollar took a back seat to sterling yesterday, but had a mixed day within itself. The Bank of England’s releases saw the dollar fall to the lowest point against sterling since the end of January, but witnessed mixed fortunes against its other partners. With no major data from the US to drive things from stateside, the dollar had little of its own to go on.
While we heard the Federal Budget Balance overnight, where, quite remarkably the Republicans seemed to have acquiesced by agreeing to increase the US debt ceiling to this time next year, the more significant releases of the week will occur today. The ever-important labour data from the unemployment claims will be of usual importance, while retail sales figures is also expected to have an impact on the US economy. Following this, there will be a second testimony from Janet Yellen, and investors will still be interested to see if she gives any further clues as to her plans for the US Federal Reserve.
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