The US dollar markets were tentative yesterday, in anticipation of the minutes from the latest US Federal Open Market Committee meeting. With no significant data to alter performance before this, the US dollar remained little changed against both sterling and the euro. Following the announcement, the US dollar strengthened as the minutes revealed a clear outline as to when then US Federal Reserve’s quantitative easing will come to a close. Assuming the US economic recovery stays on track, the final $15bn will be reduced at the October meeting. That being said, the minutes failed to outline a clear indication as to when interest rates may start to rise, preventing further US dollar strength.
Today holds just the one piece of noteworthy data, in the form of the unemployment claims. As the labour market is crucial to the overall economy, the results may well effect forecasts on interest rates and in turn the US dollar. Aside from this, continued reaction to last night’s minutes will be the main influences on the currency’s strength today.