US Dollar weakness driven by interest rate speculation

The US dollar struggled yesterday, weakening against the majority of its trading partners; but strengthened against a weak sterling. There was little in the way of significant data released to harm the currency’s performance; instead, the US dollars weakness was attributed to increased speculation surrounding when the US Federal Reserve would raise interest rates. The US dollar strengthened initially, as Goldman Sachs brought forward their forecast as to when interest rates would rise; however, these gains were short lived as investors failed to buy into this prediction and chose instead to wait for Wednesdays release of the minutes from the latest rate setting meeting for greater clarity.

Before then, today will be another quiet one for the US dollar in terms of economic releases, with only the job openings figure due before we hear from a member of the Federal Reserve.