The US dollar had a quieter day yesterday, but remained well below the 1.35 level against the euro as it continued to benefit from uncertainty in the Eurozone. After Tuesday’s encouraging inflation data, yesterday saw no significant data from the US to extend its good fortune. The only release from the country was some crude oil inventories, and this was near-expected, thus prompting no notable reaction.
Today sees the focus shift back to the labour market, as the unemployment claims figure is due. Given its close relation to the interest rate agenda, investors will be hopeful for positive evidence in support of a rate rise. Following this, the new home sales may also affect the currency’s performance, as might the manufacturing sector’s Purchasing Managers Index.