Negative data in the US can’t push the dollar back down against a weak sterling

With less than impressive data releases on Tuesday, movements for the US dollar continue to be dictated by sterling. We saw the release of Consumer confidence, which fell harshly compared to the previous month – right down to the lowest level in three months. Existing Home Sales data, however, pushed up  to its highest level for four months.

Minimal data releases are due today, with Flash Services Purchase Managers’ Indices expecting to show growth with a small increase on the previous month. We expect to see the market movements continue to be dominated by sterling.