020 7898 0500The dollar touched its lowest level against the euro in a year yesterday after comments from Draghi and Carney fuelled bets on tighter monetary policy in Europe. Carney stated that there may need to be an increase in interest rates soon.
Carney’s remarks convinced traders that European monetary policy was shifting, just a day after ECB President Draghi opened the door to tweaks in the Bank’s stimulus policy, fuelling market expectations that the ECB will announce a reduction of stimulus as soon as September.
Dollar weakness was also aided by the US delay in a healthcare vote. US Senate Majority Leader Mitch McConnell delayed a vote on healthcare legislation, hoping to get more support from Republican senators.
Today sees US Gross Domestic Product figures and unemployment claims headlining.
