Sterling is trading at a 4 week low against the dollar following the release of the latest Federal Reserve Bank minutes. In the minutes published from their July meeting, the Federal Open Market Committee (FOMC) saw the potential to ease their bond buying scheme this year, if the economy continues to improve as expected. Against the EUR, the pound remained steady as the single currency also fell against the dominant greenback.
After testing a major chart point on many occasions this month, support for the euro finally gave way against the dollar after the FOMC minutes, to trade at a 9 month low. Once again, markets are noting the rise in Covid cases in Europe with Germany reporting another 8,400 new cases and the 7 day incidence rate climbing to 44.2.
The dollar index which measures the U.S currency against six of its peers climbed as high as 93.502, its strongest since November last year. Initial jobless claims are released later today and will be especially scrutinised after the Federal Reserve Bank warned in their minutes that bond tapering could rely on employment targets being met.