It was an interesting day for the greenback, with the Federal Reserve’s interest rate decision and President Trump tweeting about extending the trade war against China. The Fed not only held rates steady, but indicated there would be no further interest rate increases this year.
This dovish stance in itself would have pegged back the dollar, but combined with the President saying that tariffs could be held against Chinese imports for a longer period, the dollar slipped by half a cent against the Euro.
The week will end on some economic data that could indicate if the US economy is slowing, including the Philadelphia Fed Manufacturing Index today, and the Markit Manufacturing, Services and Composite PMI tomorrow, as well as home sales.
Definitely worth watching.
