Despite an upbeat labor report last Friday, the US Dollar continues to be under some heavy pressure as market expectations of a rate hike in this calendar year wane. By the conclusion of last week, the greenback had recorded its worst week since February, losing nearly 2% of its value, thanks in large part to Janet Yellen’s comments about exercising caution amid global growth uncertainty. It appears that the Federal Open Market Committee, which establishes interest rates for the Fed, is now firmly split, with Janet Yellen, the chair, leading the charge for the doves.
As reported at 9:45 am (BST) in London, the EUR/USD was trading at $1.1363, moving away from the session peak at $1.1413. The earlier release of producer price information for the Eurozone which came in below expectations is putting the Euro under some short-term pressure. The USD/JPY was lower at 111.6315 Yen, relatively unchanged from the opening price. The GBP/USD was $1.4237, up 0.11%.
FOMC Minutes Loom
Though the week’s market moving events are primarily dominated by central bank policy decisions, on Wednesday, it will be the release of the Federal Reserve’s latest meeting minutes that could impact the US Dollar. Though the most recently comments by the Fed officials are holding sentiment in check, the protocols of the FOMC will also be scrutinized for clearer direction regarding the Fed’s outlook.