Wednesday afternoon was eagerly awaited with the FOMC August meeting minutes released. This would give the market a much clearer picture of how the US feels its economy is running after the July meeting was held before its strong July non-farm payroll figures were announced and saw unemployment fall from 5.7% to 5.4%. The meeting did not fail to deliver with it being revealed that a majority of FOMC members felt the necessary economic conditions would likely be met in the coming months to be able to announce and commence tapering of their quantitative easing program before the end of the year. This has seen cable move nearly a cent lower over night before steadying itself this morning just below the 1.3700 mark. EURUSD has also continued it’s move lower and is now below the 1.1700 mark which has not been seen since November last year.
Today will see more action for the US dollar as initial jobless claims are announced. There is an expectation that this again reduces from its previous figure of 375k to keep the USD on the front foot.
Other currencies are relatively quiet from a data point today and will be looking to see how the markets continue to adjust to the potential of the US implementing any tapering later this year.
GBPEUR continues to trade in the middle of its 1.16-1.18 range that it has stayed in for the majority since early June.
Friday will see more as the UK will announce July’s Retail Sales data in the morning before Canada releases the same for Jun.
Have a great day.
Chris Allan, Senior Relationship Manager
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