The dollar had a poor week, losing to the majority of major currencies, in particular NOK, CAD and CHF, where the week’s losses were between 0.75 and 1.25%. There was little movement against either the euro or British pound, during a week in which the Fed held interest rates steady at 0.25%.
On the data front, we’ve seen some movement in new homes in the US, where shortage of supply has seen homes prices rise by 17.4% year-on-year. On the minus side, unemployment claims tracked a little higher.
Yesterday Markit PMI readings all came in fractionally below expectations for September, with purchasing managers more optimistic on manufacturing than services.
The week will end in a flurry of speeches by FOMC members outlining their thoughts on US monetary policy. The decision to keep rates on hold this week was tempered by warnings that asset purchases could be tapered soon, and interest rate increases follow more quickly than expected.
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