The US dollar struggled again at the start of this week, with physical data and support hard to come by. As a result, speculation over possible interest rate rises continued to lean towards the negative, with investors’ expectations on timescales being pushed out. The only events of note were words from members of the Federal Open Market Committee (FOMC), which added to the caution. Dallas member Richard Fisher continued to appear optimistic, but caveated this by wishing to remain sensible. This meant that hopes of interest rates being raised sooner rather than later were calmed, causing the dollar to drop against higher-yielding partners such as the Australian and New Zealand dollars, as well as against the euro and sterling.
Today is another quiet day in terms of data releases. The figures of note come later this afternoon, in the shape of existing home sales. With this in mind, the dollar may struggle to find any cause for support, so continued negative speculation could continue to govern its movements in currency markets.