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Posted July 24th, 2014 by Charles Purdy

Will US employment data boost expectations of US interest rate rises?

The US dollar had a quieter day yesterday, but remained well below the 1.35 level against the euro as it continued to benefit from uncertainty in the Eurozone. After Tuesday’s encouraging inflation data, yesterday saw no significant data from the US to extend its good fortune. The only release from the country was some crude oil inventories, and this was near-expected, thus prompting no notable reaction.

Today sees the focus shift back to the labour market, as the unemployment claims figure is due. Given its close relation to the interest rate agenda, investors will be hopeful for positive evidence in support of a rate rise. Following this, the new home sales may also affect the currency’s performance, as might the manufacturing sector’s Purchasing Managers Index.

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 July 23rd, 2014 by Charles Purdy

US Dollar benefits from positive sentiment

The US dollar had a mixed day overall yesterday. The currency did, however, manage to reach the highest level of 2014 against the euro, with many thinking that the US will see higher interest rates before the Eurozone does. The main release for the day was the inflation data in the form of the Consumer Price Index, which showed the overall level to be unchanged at 2.1%. Alongside this, the existing home sales was better than expected, helping to boost dollar strength. The major movement was not driven just by data levels, though, as investors focused on long-term disparities between economies and future prospects.

Posted July 22nd, 2014 by Charles Purdy

Will todays inflation and home sales data support the dollar

The US dollar had a subdued start to the week, with no significant movements of note against its major partners. The currency managed to make slight gains against both sterling and the euro, as little data was released from both the US and the wider areas. As such, investors were tentative as they looked ahead to today’s data points.

First up from these is the inflation data from the Consumer Price Index. Investors will be keen on these figures given that they give a broad overview of the state of the economy – they also carry influence as to when the US Federal Reserve will raise their interest rates.

Posted July 21st, 2014 by Charles Purdy

Timing of US interest rate increases still uncertain

Consumer Sentiment dropped below what was forecast on Friday of last week. However, its overall effect on the performance of the US dollar was limited. In fact, we saw the US dollar strengthen moderately against a number of major currencies on Friday.

There are plenty of important data releases due out this week, starting with inflation data and existing home sales figures on Tuesday. Whilst the Chair of the Federal Reserve Janet Yellen has been explicit about the winding down of the US bond-buying programme, uncertainty remains over when interest rates will be raised. Data such as the Consumer Price Index (CPI) released on Tuesday will play a role in determining when indeed this will occur.

Posted July 18th, 2014 by Charles Purdy

US Dollar strong as market data beats estimates

The US dollar has enjoyed a good week, buoyed more by positive long-term sentiment than physical data. The currency enjoyed gains against the majority of its trading partners, apart from an exceptionally strong sterling. The main event of interest to investors stemmed from words from US Federal Reserve Chair Janet Yellen. In her testimony to the Senate Banking Committee, she stated that interest rates could rise sooner than expected should the labour market continue to show improvements. On top of this, she alluded to the fact that when they do start to rise, it could happen quickly.

With regards to data, the market seemed to ignore the release of worse-than-expected retail sales figures and instead focused on better than expected manufacturing data.

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