The US dollar slowly started to recover yesterday following ‘Black Monday’, strengthening nearly a cent against sterling and over a cent against the euro. This followed China’s decisions to cut interest rates on Tuesday in an attempt to prop-up the Chinese economy and equity market. The US dollars strength was supported by the consumer confidence figures released yesterday, showing a much better than expected figure – the best since January this year.
Today we can expect more movement for the US dollar as uncertainty remains extremely high following the events of ‘Black Monday’. Data releases today include the Durable goods order, which is expected to show a drop against the previous month; US Federal Reserve member Dudley will also be speaking, expected to remain very supportive on an interest rate hike in short term.