Will the US dollar continue on its downward path?
The US dollar continued to be out performed last Friday as all headlines highlighted its two year low against sterling. While optimism over a December start for the Federal Reserve to begin to taper its program of quantitative easing had given some strength to the currency, this has all but fizzled out now and events were thin at the end of the week owing to Thanksgiving. This is far from the case as we enter a new week and month, as Federal Reserve Chairman Ben Bernanke kicks things off today with his views before data starts with some manufacturing Purchasing Managers Index (PMI). Wednesday is then busy, with non-farm employment change, the Trade Balance, non-manufacturing PMI, and new home sales all due with potential to impact rates. Moving to the back end of the week, Thursday brings the preliminary GDP and unemployment claims before Friday’s ever significant non-farm employment change and overall unemployment rate. Despite most now expecting quantitative easing to be held until the new year, positive figures from the week would likely give encouragement for this to happen sooner rather than later, which would be a positive move for the country and its currency. Call your trader now for the latest US dollar rates, as it tries to show some strength of its own.