Wednesday was not a great day for the US dollar. It weakened first thing against sterling following positive data out of the UK. It then lost further ground as the markets digested the statement following yesterday’s Federal Reserve meeting. In the statement it became clear that the US economy was slightly behind growth expectations for this year, any increases in interest rates would be gradual and from this the markets forecast that a first increase could happen in September.
Following the US Federal Reserve statement last night, we expect to see a basket of US data releases today. The spotlight will be on the consumer inflation figure, which is expected to be a more positive figure than last month. It has been previously reported that the US economy struggled in the first quarter due to seasonal factors, and the continued low oil price, so any positivity shown regarding inflation may benefit the US dollar.