Despite a small dip yesterday, the US dollar has been strengthening slightly against the euro over the past week or so, while remaining nearly 10% lower than this time last year.
This may not last. There is increasing talk in the US of the need to start tapering support for the US economy, which would be supportive of the dollar.
More immediately, we have a good deal on the docket today, with retail sales coming in at 1.30pm launching an afternoon of data, including industrial production and the housing market.
Tomorrow is the Federal Reserve’s interest rate decision.
For more on currencies and currency risk management strategies, please get in touch with your Smart Currency Business trader on 020 3918 7255 or your Private Client trader on 020 7898 0541.
