The dollar suffered against both the pound and the euro yesterday and is still weak this morning, as diminishing yields and decreasing demand for safe havens currencies took effect. The Federal Reserve are due to release the minutes from the July meeting later today. The Fed is not expected to introduce any new monetary stimulus policies, but investors will be paying attention to any change to its approach to inflation.
As well as a host of other factors, the Fed’s intervention in financial markets to maintain liquidity in the midst of the coronavirus pandemic has weakened the dollar, pushed riskier currencies to all-time highs and reduced demand for safe-havens.
US housing starts jumped 22.6% in July, the most since February of this year. It is emerging as one of the few areas of strength in an economy suffering because of the pandemic.
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