020 7898 0500The US dollar got off to a good start this week as it edged higher against a basket of currencies. It was mainly driven by uncertain election results from both Germany and New Zealand which has cast some doubt on the future directions of each country’s policies. Worryingly, we’ve also seen the price of gold increase after the foreign minister for North Korea called Donald Trump’s recent comments a ‘declaration of war’.
It’s a busy day ahead, with consumer confidence figures due. They are forecast to dip slightly lower from last month. We’ll also be keeping a keen eye on Federal Reserve Chair Janet Yellen’s speech today on inflation, uncertainty and monetary policy. With investors still sceptical about the possibility of further rate hikes this year, this will be a key focus. Futures contracts suggest the next rate hike is not fully priced into the market until March 2018 so, should things change, we could see a sharp movement in dollar.
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