The dollar strengthened yesterday and is still up against the pound this morning, following scheduled speeches from FOMC members. They took a ‘less dovish’ stance to interest rates than expected, however, a rate cut is still expected to be announced next month.
In US-China trade news, President Trump and President Xi are due to meet on Saturday at the G20 summit. Should tensions rise as a result, the Federal Reserve are likely to respond with further suggestions of rate cuts.
Durable goods orders for May will be released later today, which may also have a bearing on the Fed’s stance to interest rates and could, therefore, have a knock on effect to the dollar.
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