Dollar Continues to Drift with Dovish Fed
It was another fairly quiet trading day yesterday with little to inspire the market, the dollar continued to drift lower against the majority of currencies and this move was helped as the Fed minutes came out with a slightly more Dovish tone than the market was expecting.
The Euro continued to grind higher in the lower dollar environment and the situation in Spain assisted this move with the Catalans backing off from declaring independence – at the moment (We also note that Barca is sitting pretty at the top of the Spanish league and there have already been questions as to how independence would affect their league membership – politics and sport do sometimes make strange bedfellows!) . UsdJpy continued to trade well in the range as the lower dollar competed with the buoyant stock markets and Cable continues to slowly grind higher although traders are still wary of any new Brexit and political influences.
Looking ahead to today’s trading and once again patience will be the traders best friend as we don’t have much in the way of fundamental data releases until the New York session where we have the US PPI numbers out and then a number of tier 1 speakers in Washington due later in the day, with ECB President Draghi probably the pick of the bunch.
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Wednesday’s City:Kyoto, Japan