USD: turbulent times for the dollar with positive and disappointing news

It was a pretty turbulent day for the dollar yesterday, as it showed some strength off the back of euro weakness following the European Central Bank’s meeting minutes and reduced concerns over the future of Gary Cohn, Director of the US National Economic Council. There had been some speculation over his possible resignation, but a Tweet saying the statements were 100% false quickly put this to bed.

Weaker-than-expected industrial production and manufacturing data did, however, soften the effect of this news somewhat.

Looking to the day ahead, we have the University of Michigan consumer confidence survey. This is forecasted to edge slightly higher, which some consider to be an early indicator of an economic upturn. We’ll have to wait until later today to find out the results and whether or not this will change investor’s thoughts towards interest rates.

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