US Dollar – US Markets The US Dollar dropped against the majors yesterday, as the minutes of the latest FOMC meeting offered no clarity over the probable timing of an interest rate hike in the US. Meanwhile, the minutes indicated that the central bank would conclude its stimulus programme by October 2014, further demonstrating that economic recovery in the US remains on track following a major setback witnessed initially this year. The minutes also indicated that the central bank’s policymakers discussed means to exit the loose tools that were used during the financial crisis in the previous decade. Although uncertainty over the future course of interest rates in the US hurt the greenback yesterday, the recent strong labour market data could possibly prompt the Fed policymakers to revisit their stance on interest rates during the period ahead. Meanwhile, the greenback registered marginal gains against high yield currencies today, as soft economic data from China elevated fears about growth in the Chinese economy. Going forward, apart from the weekly jobless claims figures, the Fed Vice-Chairman, Stanley Fischer’s speech will attract market attention.
Posted on: Thu, 10 Jul 2014 09:35:45 +0000
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