The dollar weakened yesterday following the Federal Reserve’s latest interest rate decision which was largely priced in by markets.
Yesterday saw the Fed raise interest rates in the US by 75-basis points, bringing the rate up to 2.25-2.5%, the highest since 2019. Speaking after the decision, Fed Chair Jerome Powell revealed that another “usually large” interest rate hike may be required in September, but a final decision will be determined by the data. These comments were less hawkish than markets were expecting, which weighed slightly on the dollar in the aftermath.
In the data world, durable goods orders for June came in much higher than predicted, rising 1.9%. This is the fourth consecutive monthly increase and indicates that business spending plans remain strong despite rising interest rates and inflation.
Later today, GDP and initial jobless claims figures will be released.
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