The US Dollar had a steady day yesterday as the markets remain focused on Wednesdays key Federal Reserve meeting, although we did see the UD dollar reach break above 1.70 against sterling for the first time since August 2009. The New York Federation announced that the Empire State Index of regional business activity was 19.3 for June, much better than the forecast of 15. This bodes well for the US economy overall and in particular for the Philadelphia Fed Index which is released on Thursday.
There is little data out in the US today apart from the inflation data for May which are expected to mirror Aprils figures. Tomorrow we expect the Federal Reserve to cut monthly bond buys to US$35 billion down from US$45 billion. The key will be the economic projections of when the borrowing rates will potentially be raised.