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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.

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Posted January 30th, 2014 by Charles Purdy

US continues to taper

The US dollar had a tentative day yesterday ahead of last night’s decision by the Federal Open Market Committee (FOMC). With no last minute data to give any final support or resistance, US dollar markets remained within a fairly narrow range. At the meeting, the FOMC voted to reduce its extraordinary funding of the economy by a further US$10 billion which brings it down to US$65 billion per month. The effect on the US dollar itself has been minimal as this reduction was in line with expectations. There is a fair amount of data today for investors to mull over in addition to last night’s FOMC announcement, starting with an advance growth figure and unemployment claims.

Posted January 29th, 2014 by Charles Purdy

US dollar suffers some worries prior to the Federal Reserve meeting today

The US dollar struggled a little yesterday as data failed to enthuse investors ahead of today’s important decision from the Federal Open Market Committee (FOMC). The US currency was under a little pressure as the US core durable goods orders undershot predictions by a long way.

With this unable to provide some final encouragement to the FOMC to increase the level of their tapering of the quantitative easing as they did in December, the US dollar suffered some slight losses. These were made up for a little later on, however, as a Consumer Confidence figure beat its expectations, allowing a glimmer of hope for the currency.

Posted January 28th, 2014 by Charles Purdy

US dollar awaits Wednesdays Federal Reserve meeting

The US dollar had a quietly mixed day, with no overriding trend emerging in the dollar markets. The US currency fell once again versus sterling towards last week’s two-and-a-half year lows as investors bet on positive UK data. This was the most significant movement of the day for the dollar, with lower-than-expected New Home Sales figures from stateside reflecting negativity on the US currency.

Today we see two main points of interest, firstly in the form of the core durable goods orders, followed by the Consumer Confidence Index from the Conference Board. With tomorrow’s Federal Open Market Committee meeting at the fore of investors’ minds, data is sure to be closely scrutinised as investors look for encouragement that the US Federal Reserve will decide to further increase the level of their tapering.

Posted January 27th, 2014 by Charles Purdy

Expect rapid US dollar movement in a week of lots of data releases

The US dollar ended the week on a positive note gaining significant ground against sterling. This week sees the release of a whole range of significant US data plus the Federal Reserve meeting midweek which will influence currency movements.

On Tuesday we look forward to monthly figures for durable goods orders as well as consumer confidence figures. Positive figures for both will give a good indication of economic sentiment, which could affect Wednesday’s central bank meeting. The big question on everyone’s lips will be whether the Federal Reserve will taper its quantitative easing programme once again, following last month’s move to reduce capital injections by $10 billion per month.

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