The US dollar suffers as increasing interest rates slide

This week has been mostly negative for the US dollar, as it failed to further the gains it had made last week against both sterling and the euro. Consumer and Producer Inflation figures were released earlier in the week, and these both showed contraction. With this in mind, the US dollar had hoped for some positive remarks from the US Federal Reserve on Wednesday evening – but were disappointed. It was agreed that interest rates were to be kept as they were, further increases this year were more likely to be limited to two rather than the four mooted in December, followed by negative discussions around the global economy.

Today, we see the release of consumer sentiment and this is expected to show a positive figure. We also expect two Federal Reserve members to share their thoughts on this weeks’meeting.

If you are looking to buy or sell US dollars, we suggest contacting your trader now for live rates, news and currency purchasing strategies.