The dollar weakened to a near five month low against the pound and a two year low against the euro yesterday, as worries increase over the rising coronavirus cases in the US. However, it has made a small recovery this morning ahead of the Federal Reserve’s meeting this week
The Fed are expected to keep interest rates on hold and to reiterate the stance that rates will stay near to zero for the foreseeable future. However, the dollar has risen on hopes that the next fiscal rescue package will be announced to help the economy recover from the coronavirus crisis.
The US manufactured durable goods orders data were released yesterday and are slightly better than expected, according to the US Commerce Department. Orders for durable goods rose 7.3% in June, while economists had expected a 7.2% gain.
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.
