Dovish FED Weakens the Dollar

Daily Update - 27th July 2017

Yesterday’s Market

• GBP GDP
• USD New Homes Sales, FED’s Monetary Policy Statement & Interest Rate Decision

Yesterday Explained

As most of the markets expected the weak Fed Meeting minutes weighed badly on the dollar. Furthermore, UK Gross Domestic Data had positive figures which supported pound to move up. US New Homes Sales figures were worse than expected and it did not help the weakening dollar.

As expected Fed’s kept the Interest Rate Unchanged However, a lack of fresh hints on whether the Fed remains on track to hike rates this year combined with a dovish language in the statement knocked-off Treasury yields across the curve, which triggered a broad-based US dollar sell-off.

Today’s Market

• EUR Gfk Consumer Confidence Survey
• USD Initial and Continuing Jobless Claims & Durable Goods Orders

Today’s Focus

The day will start with Gfk Confidence Survey from euro zone which measures the level of consumer confidence in economic activity. Then the focus shifts to USA where first up will be data related US job market with the release of Initial and continuing jobless claims. 

The day will end with Durable Goods Orders from US which measures the cost of orders received by manufacturers for durable goods, which means goods planned to last for three years or more, such as motor vehicles and appliances.