The US dollar had a largely disappointing day yesterday, amid some mixed results from its economic data releases which highlighted that US dollar strength is beginning to have a significant impact on exports. The most significant release was a disappointing one for the country, as the Durable Goods Orders data showed an unexpected decline. With forecasts suggesting the result would show an increase of around 0.6%, the actual result of a 3.4% decrease left investors feeling as cold as the New York weather. As a result, the dollar fell against most of its major partners, having been at record levels.
Positive consumer confidence and new home sales releases added some positivity to stem the losses, but failed to reverse the stronger trend. Today is light on physical data releases, but does hold the latest rate decision from the Federal Reserve. While it seems unlikely that we will see any change from the current levels, the accompanying statement is sure to be scrutinised closely for any clues as to potential future decisions. Any hints as to timescales or feelings within the US Federal Reserve will be of particular interest, as investors look to the longer term prospects of the dollar.