Yesterday’s high: $1.3054
Yesterday’s low: $1.2951
US Dollar Fluctuates on Dovish Fed Speech
The US Dollar initially slipped against the other majors on Tuesday following suggestions from a Federal Reserve policymaker that the Fed won’t need to raise interest rates in the near-term.
However the ‘Greenback’ was able to push higher in the afternoon as the US Department of Labour reported that the number of job openings jumped from 5.7m to 6.1m in June, beating expectations it would slide to 5.6.
Meanwhile the Pound stumbled in trade on Tuesday as a quiet day for data led investors to focus on recent Brexit chatter, with many markets disappointed by claims that negotiations ‘have not begun well’ due to ‘differences’ in the cabinet over how to proceed with talks.
USD Outlook: Fed Dove to Lower US Rate Hike Odds?
The USD GBP exchange rate may weaken today if Chicago Federal Reserve President Charles Evans strikes a more cautious tone in a speech in the evening, with Evan previously arguing that the bank should rethink its plans to raise rates this year in the face of lacklustre inflation.
Meanwhile the Pound may struggle to exploit any weakness in the US Dollar as its finds itself again left without any economic data to propel it forward on Wednesday, while Thursday is likely to bring news that the UKs trade deficit rose again in June.
18:00 Fed Evans Speech
09:30 UK Trade Balance
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