The US dollar had a varied start to the week as events stateside were thin on the ground. The currency hit the lowest point in three months against the Japanese yen, before making ground against many other currencies on Tuesday, with investors tentative ahead of Wednesday’s important release, the Federal Open Market Committee (FOMC)’s latest set of minutes. This showed that the debt on their balance sheet had increased exponentially thanks to the US Federal Reserve’s sizeable quantitative easing process, and as such would mean a significant increase in interest cost should interest rates be raised. This led to further uncertainty as to when a when such a change may occur.
However, yesterday brought small movements against most currencies for the dollar, despite both US unemployment claims and existing homes sales coming in behind expectations. The only piece of data for investors to consider today are new home sales figures, as they continue to digest the implications of the FOMC meeting.
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