It was another tough day for the US dollar as it continued to weaken against the majority of its peers. Data releases for the US did not help, with the major release being consumer confidence, which fell to a low of three months. This helped push the US dollar to its highest level since March against sterling and above 1.09 against the Euro. This leads to speculation that a June interest rate hike may be too soon for the US economy.
We can expect another busy day for the US dollar, with major data releases. Advance gross domestic product (GDP)data, a growth indicator, is due to be released. It is expected to reflect the recent slowdown in the economy, where growth in the US could be less than half of that of the previous quarter.
The Federal Open Market Committee (FOMC) April meeting concludes today and the statement released following the meeting should highlight how the US Federal Reserve members are thinking with regard to a possible interest rate increase this year. Their view is likely to be swayed by recent economic data releases and the slowdown in the US economy.