The US dollar remained weak today, falling for the fifth straight day against the euro, as the minutes released by the Federal Reserve continued to weigh on the greenback.
The minutes were rather hawkish, with one member even voting to raise interest rates in July. Yet markets were not happy with what they have seen and did not share the optimism of US policy makers. William Dudley, New York Fed President, who talked about possibility of monetary tightening in September, spoke again today. He voiced happiness with developments in the US jobs market, but even such comments were unable to aid the struggling US currency.
Meanwhile, the European Central Bank released its minutes during the current trading session. The ECB showed cautiousness, especially in regards of the Brexit and its impact on the economy of the European Union, saying:
It was widely felt among members that it was premature to discuss any possible monetary policy reaction at this stage. More time was needed to assess the incoming information over the coming months, although downside risks had clearly increased.
EUR/USD rallied from 1.1288 to 1.1358 as of 20:11 GMT today, reaching another high since the huge slump on the day of the Brexit announcement — June 24. GBP/USD climbed 1% from 1.3039 to 1.3163. USD/JPY declined from 100.26 to 99.92, and its daily low of 99.64 was the lowest since November.
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