The US dollar continued its march higher today. The currency gained for the fifth straight session against the Great Britain pound and for the sixth against the euro.
Wednesday’s economic data from the United States were very good. Growing employment and falling trade deficit fueled speculations that the Federal Reserve will tighten its monetary policy in the near future.
Talking about monetary policy, the Fed released minutes of its December policy meeting. The notes said that the central bank “can be patient in beginning to normalize the stance of monetary policy”. Still, most market participants think that the Fed will raise borrowing costs this year. As for the dollar, policy makers believed that the US currency will continue to appreciate, but the rally will not be as detrimental for economic growth as has been considered previously.
EUR/USD ticked down from 1.1839 to 1.1826 as of 4:55 GMT today GBP/USD dropped from 1.5108 to 1.5086. USD/JPY advanced from 119.24 to 119.70.
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