020 7898 0500The Federal Reserve has slowly started to sell some of the $4 trillion of assets they hold. Combined with the normalisation of monetary policy, this move could lead to increased volatility in the dollar. Such an increase could support strength in the US dollar, as investors move away from the risks associated with emerging markets and investment in the dollar.
However, due to the current political uncertainty surrounding the Trump administration and its failure to get the latest draft of the US health care bill through the Senate, there is still a short-term risk that the dollar will weaken further.
Yesterday saw Building Permits from the US at 1.25 million which was a positive increase and crude oil inventories came in at -4.7 million against a -3.6 million forecast. The data had little impact really on what was a pretty quiet day for currency markets.
Today we have the latest unemployment data out from the US.
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