020 7898 0500The US dollar flirted with six-and-a-half-month lows yesterday, as investors’ focus shifted from US politics to monetary policy ahead of the release of the minutes of the Fed’s meeting in early May.
The dollar has taken a bit of a battering recently over worries around Donald Trump’s recent firing of former FBI Director James Comey, who was overseeing a probe into possible links between the President’s team and Russia. This is in addition to concerns about the possible delays to Trump’s economic stimulus plans.
With Trump currently abroad and (sort-of) away from the headlines, attention now turns to any possible hints of an interest rate hike. The market is beginning to price in a June rate hike, with an 83% chance.
Yesterday Moody’s downgraded China’s credit rating which couldn’t have helped the dollar either. China is the largest user of US dollars globally.
