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Posted February 21st, 2014 by Charles Purdy

US economic data mixed, US dollar steady

While a US holiday on Monday meant no activity from stateside, the US currency did briefly hit a four-year low against sterling. Disappointing US data from the Empire State Manufacturing Index released on Tuesday perversely saw the US dollar gain ground against sterling. The main event of the week was the minutes from the latest Federal Open Market Committee (FOMC) meeting, and markets were largely tentative ahead of this, while further underwhelming data figures from building permits and the Producers’ Price Index highlighted the lack of traction in the US recovery. The minutes showed that all members were in support of holding interest rates, although there were hints that the unemployment target for raising interest rates could be lowered supporting the notion that US interest rates will not be increased any time soon.

Yesterday then held mixed data and fortunes, as the Consumer Price Index and unemployment claims were as expected. The Manufacturing Index from the Philadelphia Fed was worse than anticipated, but the flash manufacturing Purchasing Managers’ Index figures were optimistic. Today holds one last data piece for the week, with the existing home sales. There are also words from a member of the FOMC for investors to mull over.

Deciding when to buy or sell US dollars? Call your trader now for the latest rates and updates.

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Posted January 31st, 2014 by Charles Purdy

US Dollar benefits from further tapering

All thoughts for the US currency were this week centred on the Federal Open Market Committee (FOMC) meeting, where they would decide whether to repeat last month’s decision to reduce the level of quantitative easing. Optimism was high for this following recent positive data, but was dampened a little as the new home sales figures were lower than expected. The US currency struggled further on Tuesday as US core durable goods orders undershot predictions by a long way, failing to provide some last-minute encouragement.

The FOMC decision did, however, follow in last month’s footsteps as the Federal Reserve reduced their bond buying by a further US$10 billion a month. While this had little impact initially, the US dollar strengthened more throughout yesterday as investors digested the news, and did so for a fifth day against the euro. This was helped by consumer spending rising the most in three years, although the advance GDP, unemployment claims and pending home sales all missed their expectations, calming some of this enthusiasm.

A few mildly influential figures are due today, including personal spending and the Chicago Purchasing Managers Index amongst others, to supplement the week’s big news.

Thinking of buying or selling US dollars? Call your trader now for the latest rates as the pressure of the quantitative easing lessens.

Posted January 15th, 2014 by Charles Purdy

Good retail sales figures boost US economy

The US dollar had an encouraging day yesterday, strengthening against the majority of most traded currencies thanks to much better than expected retail sales data being released. Core retails showed an increase of 0.7% when only a 0.4% rise had been anticipated, causing the US  dollar to generally strengthen for the first time in four days, and did so by the most in four weeks against the Japanese yen, although it did fall against sterling. After words overnight from two members of the Federal Open Market Committee (FOMC), today’s main data point from the US will be the inflation data released in the form of the Producers’ Price Index this afternoon. A number of smaller releases, including the Empire State Manufacturing Index and the crude oil inventories, serve to supplement this figure throughout the latter stages of the day. Get in touch with your trader now for the latest US dollar rates, as it looks for some sustained support.

Posted January 14th, 2014 by Charles Purdy

Key US retails sales figures released today

The US dollar struggled yesterday with investors apprehensive ahead of today’s retail sales figures. The most significant loss was seen against the Japanese yen, where the US currency fell to a three week low. Some economists anticipate that today’s retail sales figures will show a reduction in  growth for the month of December, which in turn would  reduce the likelihood that the Federal Reserve will taper its quantitative easing program once again at this month’s central bank meeting. Overnight we saw the Federal Budget Balance produce the largest budget surplus on record for the month, but this had little influence on the market. Aside from the aforementioned retail sales figures, we also have business inventories data and two members of the Federal Open Market Committee (FOMC) will be speaking today. Investors will closely analyse the comments made by the FOMC members for clues to future momentary policy. Get in touch with your trader now for the latest US dollar rates.

Posted January 8th, 2014 by Charles Purdy

Will todays employment data be supportive of the US dollar

The US dollar had a largely positive day, following the release of further encouraging data. Trade balance figures released yesterday showed the deficit had shrunk and by more than anticipated. As a result, the US dollar appreciated, in particular extending the recent gains against the Japanese yen. Investors also mulled over the Senate’s decision to appoint Janet Yellen as the successor to Ben Bernanke’s as the Chairperson of the Federal Reserve, albeit with the lowest recorded support ever. Today is another important one for the US dollar, starting on the data front with the ADP non-farm employment change, which will wet investors’ appetite ahead of Friday’s more influential non-farm payrolls figures and overall unemployment rate. Then, later this evening, the minutes from the most recent Federal Reserve meeting will be released, significant as always but especially following the decision at last month’s meeting to taper the central banks quantitative easing program. Investors will look for some clarity as to the degree of consensus from the members of the Federal Open Market Committee (FOMC) with regards to the central bank’s decision to taper. Call your trader now for the latest US dollar rates, with some crucial events early in the year.

Posted January 7th, 2014 by Charles Purdy

Janet Yellen take the helm at the Federal Reserve

The US dollar had a disappointing day on the whole yesterday, thanks to weaker than expected data being released. The main announcement was that the non-manufacturing purchasing manager index from the Institute for Supply Management showed an unexpected decline, causing the US dollar to fall for the first day in five. Overnight, Janet Yellen was voted in as the successor to Ben Bernanke at the helm of the Federal Reserve and will take over as Chairperson from February 1st. Today will give investors the Trade Balance from the country, while they will also look forward to a raft of labour data released over the coming week. The first of these is the ADP Non-Farm Employment Change statistics released tomorrow, which acts as a precursor to the highly influential Non-Farm Employment Change figures released on Friday alongside data showing the overall rate of unemployment in the county. The Federal Open Market Committee (FOMC) meeting minutes will be analysed closely by economists as they look for some clarity as to the degree of consensus from the members with regards to the central bank’s decision to taper its quantitative easing program. Get in touch with your trader now for the latest US dollar rates, in an important week for the American currency.

Posted January 6th, 2014 by Charles Purdy

US dollar enjoys a positive start to 2014

The US dollar ended the week with positive movements again, fighting back from the two and a half year lows against sterling to post its first weekly gain for a while. This was largely down to weakness from the UK side, with the view that the US economy will be better positioned in the near future. On Friday evening and over the weekend, we heard from members of the Federal Open Market Committee, including the chairman Ben Bernanke. A busy week for the US kicks off today with the Senate voting on whether or not Janet Yellen should take over from Ben Bernanke as the Chairperson of the Federal Reserve. Also today will see non-manufacturing Purchasing Manager Index figures and factory orders released. Investors will also look forward to a raft of labour data released over the coming week, the first of which is the ADP Non-Farm Employment Change statistics released on Wednesday, which acts as a precursor to the highly influential Non-Farm Employment Change figures released on Friday alongside data showing the overall rate of unemployment in the county. The Federal Open Market Committee (FOMC) meeting minutes will be analysed closely by economists as they look for some clarity as to the degree of consensus from the members with regards to the central bank’s decision to taper its quantitative easing program. Get in touch with your trader for the latest on the US dollar, on a key week for the American currency.

Posted December 9th, 2013 by Charles Purdy

US dollar waits for the start of tapering

The US dollar had another encouraging day on Friday, as the ever important non farm payrolls figure exceeded market estimates. This release showed jobs gains in excess of 200,000 for the second consecutive month for the first time in nearly a year, and as a result more people felt a December taper to quantitative easing program was a viable proposition. This result, coupled with the news that the overall unemployment rate had fallen to a 5 year low of 7% in October puts increased pressure on the central bank to taper sooner rather than later. In spite of this, a survey still showed that only 34% of economists thought that we could see a taper in December, with 40% giving March as their expected start date. There is some influential data towards the end of the week, but before then, investors will pay attention to comments made from a member of the Federal Open Market Committee today as they look for any clues as to when the tapering is likely to begin. A few smaller releases could combine mid week to help the currency along, before Thursday brings the monthly core and general retail sales figure, alongside more labour data in the unemployment claims. Friday then heralds the opportunity for one last push, with the Produce Price Index seeing out the week. Call your trader now to hear the latest US dollar rates, with tapering on everyone’s minds.

Posted November 20th, 2013 by Charles Purdy

Busy day for US data, so expect US dollar movement

The US dollar continued its slow start to the week yesterday, with little data released to influence market movements. Several members of the Federal Open Market Committee (FOMC) were speaking yesterday who reiterated the central banks recent sentiment of maintaining its current stimulus package. These tentative remarks caused the dollar to retreat slightly, as speculation surrounding a potential tapering of the Federal Reserves quantitative easing program in December dwindled. This sentiment was then supported further as Janet Yellen (who is expected to be voted in by the Senate on Thursday to take over from Ben Bernanke as he steps down from his post as chairman of the Federal Reserve in January) said that quantitative easing has helped boost the economy and the unemployment threshold of 6.5% is not a trigger to raise interest rates. Today, brings a raft of important economic data releases which could cause significant volatility for the currency. First, we will see retail sales and consumer price index figures released, before the existing home sales a little after. Then, this evening we will see the  minutes from the most recent FOMC meeting released. As with the UK, investors will look for further clues as to when we could see a change in monetary policy. Get in touch with your trader now.

Posted October 30th, 2013 by Charles Purdy

Data benefits US dollar

The US dollar had a quietly convincing day yesterday, enjoying a third straight gain against sterling, and making ground on the euro as well. This came about as the Federal Open Market Committee begun their two day meeting, with its conclusion and results due out later today. After the recent government shut down and its surrounding issues, it is highly unlikely that any tapering by them will start until the new year, and this is expected to be confirmed by the members following this meeting. However, the dollar gained ground, as many may have been lowering their risk positions before this. Yesterday was also busy for the dollar in terms of data, where we saw core retail sales and producer price index figures just slightly behind expectations. Before this evenings meeting results, the non-farm employment change figure is liable to cause some volatility given its significance as a strong economic indicator. Call your trader now for the latest US dollar rates, on an important day in its week.

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