The dollar is still weaker against the pound and euro this morning after the Fed confirmed it will accelerate the tapering of its bond-buying programme.
The greenback is struggling as markets adopt a more ‘risk on’ approach following surprise interest rate hikes and tapering announcements from the other main central banks.
Data released in the US yesterday showed that both manufacturing and service activity declined in December, with factory activity seeing the slowest growth in a year. Initial jobless claims saw an increase, but still missed market expectations. However, Building Permits increased by 3.6% and Housing Starts by 11.8%.
For more on currencies and currency risk management strategies, please get in touch with your Smart Currency Business trader on 020 7898 0500 or your Private Client trader on 020 7898 0541.
