The US dollar had another mixed day yesterday, with little intrinsic data to sway investors one way or another. Gains were seen against sterling thanks to weak data from the UK, but this ground was largely lost throughout the afternoon. For the US, the biggest release was the Consumer Confidence figure. This came out a little behind expectations, but had a muted impact as investors remained tentative ahead of today’s much more influential events.
Firstly, the ever important labour markets will provide an independent non-farm employment change figure, a good indicator ahead of Friday’s official variant. Following this, we will receive reports of the advance Gross Domestic Product growth figure for the first quarter, which investors will look to for indications of the health and growth of the economy as a whole. Following this broad indicator, the evening brings the latest meeting of the US Federal Reserve. While nothing drastic is expected, continued tapering of the Federal Reserve’s quantitative easing programme is likely to relieve more pressure on the dollar. Investors will also look for any other hints that may sway the future prospects of the dollar.
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