The U.S. dollar slipped against a basket of its major rivals on Thursday on a perceived lack of progress on U.S. tax reform and public spending. Wednesday's more dovish-than-expected Federal Reserve meeting minutes also weighed on the greenback.
It seemed that traders hoped for more hawkishness out of yesterday’s released FOMC meeting minutes, especially given Fed Chair Yellen’s recent hawkish comments. Despite the lower enthusiasm however policymakers still made it clear that the next rate hike shall happen “very soon” as long as inflation and job data performed.
The euro slipped below $1.05 for the first time in six weeks on Wednesday. The single currency is weighed by a combination of concern over France's presidential election campaign and growing expectations for a rise in U.S. interest rates.
Monday was a relatively quiet day with with the day’s economic docket scant of high impact data. The US was on holiday for Presidents’ Day as well, making volumes even thinner. This morning overall sentiment in Asia was positive with the major Asian equity indices trading mostly higher albeit in a limited dose.
U.S. bond yields slipped on Monday, weighing on the dollar against the yen, as the euro struggled to find momentum after suffering significant losses at the end of last week on renewed concerns about the upcoming French elections.
Better than expected US data yesterday failed to re-ignite the USD’s support. Even though Housing starts were worse than expected for January; Building permits and the Philly Fed Business outlook improved.