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Posted October 21st, 2014 by Charles Purdy

US Dollar moves sideways on lack of data

The US dollar struggled again at the start of this week, with physical data and support hard to come by. As a result, speculation over possible interest rate rises continued to lean towards the negative, with investors’ expectations on timescales being pushed out. The only events of note were words from members of the Federal Open Market Committee (FOMC), which added to the caution. Dallas member Richard Fisher continued to appear optimistic, but caveated this by wishing to remain sensible. This meant that hopes of interest rates being raised sooner rather than later were calmed, causing the dollar to drop against higher-yielding partners such as the Australian and New Zealand dollars, as well as against the euro and sterling.

Today is another quiet day in terms of data releases. The figures of note come later this afternoon, in the shape of existing home sales. With this in mind, the dollar may struggle to find any cause for support, so continued negative speculation could continue to govern its movements in currency markets.

If you are looking to buy or sell US dollars, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

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Posted October 8th, 2014 by Charles Purdy

US data supportive of the dollar

The US dollar had a mixed day yesterday, seeing little change from its opening levels against a large part of the market. There was little economic data from stateside to influence the currency’s fortunes, and as a result investors struggled for encouragement – as they had last week – regarding possible interest rate rises. The only release of note was the mildly influential job openings figure, which followed the positive trend of last week’s labour data by coming out ahead of expectations.

While overnight saw investors look to two Federal Open Market Committee (FOMC) members’ words for any clues, today’s focus remains on them for the same reason. The latest meeting minutes from the FOMC will be released later this evening, and could provide some further insight as to the sentiment of the members, and their feelings on timescales given the latest encouraging data and subsequent pressure and speculation. Ahead of this there is again little in the form of physical data releases, with just oil inventories and bond auctions to precede the minutes. As such, markets may be tentative before this event.

If you are looking to buy or sell US dollars, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Posted October 7th, 2014 by Charles Purdy

US Dollar has a “quiet” start to the week

Yesterday was a quietly disappointing one for the US currency, as economic data was scarce. With no data to talk of from stateside, the currency fell, thanks to uncertainty over timescales for interest rate rises. While Friday’s headline unemployment figures had strengthened the dollar considerably, some other figures revealed the uneven nature of the labour market. As a result, the debate against imminent rises gained some support, causing the dollar to weaken against the majority of its major peers.

Today will see some increased activity in terms of data releases, in the shape of the job openings figure. Following on from this, two members of the Federal Open Market Committee (FOMC) are due to speak. Given the varying outlooks on an interest rate decision, investors will be keen to glean any clues from both of these events as to when any movement might be expected for the US dollar.

If you are looking to buy or sell US dollars, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Posted August 18th, 2014 by Charles Purdy

Lots of data this week which could sway the US Dollar

With a strong start to the month behind it, the US dollar stalled on Friday due to conflicting data from the states.  After trading within a wide margin against the euro throughout the week, the US dollar weakened significantly on Friday as consumer sentiment data came out worse than expected.

The first major release during the week ahead comes tomorrow, with core inflation released in the afternoon. The next major release comes in the shape of the Federal Open Market Committee (FOMC) meeting minutes on Wednesday. This will provide an in-depth insight into FOMC members’ view of the US economy, and could drive further US dollar strength. With unemployment claims and existing home sales released on Thursday, the US dollar is in for a week which could see significant movement.

If you are looking to buy or sell US dollars, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Posted June 16th, 2014 by Charles Purdy

Will the Federal Reserve surprise the markets?

The US dollar had a disappointing end to the week, notably reaching a 5 year low against a strong sterling. Fridays US data failed to stem the losses, as both major pieces fell short of expectations. The Producers’ Price Index (PPI) was the first, showing an unexpected decrease. Following this, the Consumer Sentiment from the University of Michigan was also lower than anticipated.

This week again starts without major event. A few smaller pieces of data today include the Empire State Manufacturing Index, and some industrial production figures, before some more influential releases tomorrow. The core inflation figure will be the most noteworthy figure, due alongside the building permits. Wednesday is set to be the most significant day in terms of data releases, with the latest Federal Open Market Committee meeting taking place. As ever, investors will be keen to hear the Committee’s latest views and plans, particularly in terms of long term prospects. Thursday continues in strong fashion, with an ever-important unemployment claims figure, along with manufacturing index from the Philadelphia Federal Reserve. These are the final events for the week, as Friday closes out quietly.

If you are looking to buy or sell US dollars, we suggest contacting your trader now for live rates, news and currency-purchasing strategies.

Posted May 23rd, 2014 by Charles Purdy

US dollar positive apart from against sterling

The US dollar had a varied start to the week as events stateside were thin on the ground. The currency hit the lowest point in three months against the Japanese yen, before making ground against many other currencies on Tuesday, with investors tentative ahead of Wednesday’s important release, the Federal Open Market Committee (FOMC)’s latest set of minutes. This showed that the debt on their balance sheet had increased exponentially thanks to the US Federal Reserve’s sizeable quantitative easing process, and as such would mean a significant increase in interest cost should interest rates be raised. This led to further uncertainty as to when a when such a change may occur.

However, yesterday brought small movements against most currencies for the dollar, despite both US unemployment claims and existing homes sales coming in behind expectations. The only piece of data for investors to consider today are new home sales figures, as they continue to digest the implications of the FOMC meeting.

Looking to buy or sell US dollars? Contact your trader now for live rates, news and currency-purchasing strategies.

Posted May 22nd, 2014 by Charles Purdy

US Dollar loses ground against sterling

The US dollar had a largely positive day, as the currency made gains against most of its major partners, aside from sterling. While the UK data drove its own currency, speculation ahead of the minutes from the US Federal Open Market Committee (FOMC) meeting helped the dollar to make its own gains elsewhere. While the message from last time was for interest rates to remain near zero for some time, last night’s minutes highlighted the dilemma facing the committee as to when to start increasing them as the quantitative easing programme had increased the amount of debt on the Federal Reserve’s balance sheet exponentially, and as such any increase in interest rates would increase their interest cost significantly.

Today there is a little more on the physical data front, with unemployment claims being the major release from the US this afternoon. Existing home sales are also released later today, and are expected to have picked up over the past month.

Looking to buy or sell US dollars? Contact your trader now for live rates, news and currency-purchasing strategies.

Posted April 10th, 2014 by Charles Purdy

US news boosts sterling against US dollar

After an impressive start to the week, sterling traded fairly flat for most of yesterday as there were no major UK data releases. The highlight of the UK releases was news that the UK’s trade deficit decreased more than expected in February, from £9.5 billion to £9.1 billion in February. This news briefly boosted sterling. Early evening though the US released the minutes from their latest US Federal Open Market Committee meeting which saw sterling appreciate by over a cent against the US dollar as the minutes were more circumspect on when US interest rates will rise that the Federal Reserve Chairwomen had been following the actual meeting.

Today sees the release of the interest rate from the Bank of England and the level of quantitative easing from the UK. Neither of these figures are expected to change, although any of the accompanying statements by the Monetary Policy Committee may incite market movement.

Looking to buy or sell sterling? Contact your trader now for live rates, news and currency-purchasing strategies.

Posted March 24th, 2014 by Charles Purdy

Will Sterling continue to weaken?

Sterling continued its losing run suffering a poor day on Friday, with a large portion of the gains made on Thursday against the euro being erased. The UK currency performed marginally better against the US dollar, but still found itself losing ground following the recent statement from the US Federal Open Market Committee (FOMC), which inspired optimism for the US economy.

This week sees key inflation data from the UK released on Tuesday in the form of the consumer price index. This is seen as the most important inflation data for the UK, as it is used as the Bank of England (BoE)’s key inflation target. Increased inflation could put pressure on the BoE to hasten interest rate increases but the expectation is for a reduction to 1.7% for February  from the January figure of 1.9%, which are both below the target of 2%. The release of retail sales data on Thursday is also a key event, given that it is the primary gauge of consumer spending for economists. Retail sales are expected to have returned to growth in February having suffered an unexpected fall in January.  Any unexpected surprises in any of these figures could impact significantly on sterling.

Looking to buy or sell sterling? Contact your trader now for the latest rates, updates and currency-buying solutions.

Posted March 21st, 2014 by Charles Purdy

US Dollar benefits from positive comments from the Federal Reserve

The US dollar had a muted start to the week, with little data of significance from the country. Activity picked up as we moved in to Tuesday, thanks to both data releases and worldwide events. Inflation data was as predicted, and building permits and manufacturing sales figures surpassed their expected levels, while the uncertainty in the Ukraine continued to add strength to safe havens such as the dollar.

Anticipation ahead of the Federal Open Market Committee (FOMC) meeting prompted further advances on Wednesday, with investors optimistic over the possibility of continued reduction in quantitative easing. These hopes were realised, but the most significant point was the prediction from US Federal Reserve Chair Janet Yellen that interest rates would be higher than forecast at the end of 2015 by 0.25% at 1%, triggering an immediate appreciation against both sterling and the euro.

Yesterday saw this trend continue against the euro, as the dollar hit the highest point in two weeks.. New data yesterday came in the form of the unemployment claims and the manufacturing index from the Philadelphia Federal Reserve, both of which came in ahead of expectations to aid the dollar’s cause. Today sees a quiet end to the week, with just words from members of the FOMC later on due for consideration.

Looking to buy or sell US dollars? Contact your trader now for the latest rates, updates and currency-purchasing solutions.

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