- North Korea missile launch
- Federal Reserve minutes at 20:00
By Ricky Nelson
The independence day bank holiday in the United States meant that it was a quiet and range bound day in the currency markets. The North Korean missile launch raised a few eyebrows although markets barely noticed despite growing concerns for stability in the region. President Trump has suggested that America may act unilaterally as Russia and China urge restraint.
There really is very little of note due to be released today and the highlight will be the release of the recent Federal Reserve minutes at 20:00. The Fed raised rates by 25 basis points in June and apart from the increase, any other changes were minor. Inflation has been lower than expected recently which has caused some concern although most expect this weakness to be temporary. Markets will be looking for any clues with regard to further rate hikes with most expecting at least one more hike before the end of the year. Any hawkish commentary insinuating a hike as early as September would curtail the current weak dollar trend.
Ahead of that we await service sector PMI data from the UK this morning. Also US durable goods and Factory orders are released later this afternoon.