020 7898 0500By the end of yesterday the dollar was pretty much at the same levels against sterling and the euro it began proceedings. However, it should be noted there was a fair bit of intraday volatility between the greenback and pound, following Vlieghe’s comments and poor UK economic data.
However, we could see some dollar strengthening later tonight, with the release of the FOMC meeting minutes. If there are real indications of several rate hikes throughout the rest of 2018 and into 2019, the dollar could rally. The US economy has been in a period of rude health of late which should serve to encourage a withdrawal of fiscal stimulus – it’s just at what pace the stimuli is removed that is the question.
We will also see new home sales for April and a rate of PMI data. In contrast with the eurozone, these readings are expected to increase and show growth across the composite, manufacturing and services sectors.
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