020 7898 0500The US dollar has been heavily influenced by events happening outside of its borders over the last few days. First, it tumbled against the Canadian dollar after the Bank of Canada surprisingly raised interest rates in Wednesday. Then yesterday, Draghi’s press conference, which suggested a decision on the tapering of stimulus in the eurozone could happen as early as October, saw the euro strengthening against the greenback.
As seems to be the case of late, US economic data has pretty much taken a backseat; unemployment claims coming out at 298,000 against an expectation of 245,000 had very little effect on the market, except perhaps to solidify the weakness created by the strengthening of the euro.
Today sees FOMC member Patrick Harker speaking and we will watch for continued dovish tones in the stance on interest rate policy in the US.
