Call Free Phone Now:0808 163 0102
Outside the UK: +(44) 207 898 0541 Request a Call Back
  Daily Currency News Euro US Dollar Educational Articles  
Posted January 16th, 2014 by Charles Purdy

Positive data supports US dollar

Yesterday was a positive one for the US dollar as positive data from the country spurred some gains for the US currency. The December producers’ price index registered its highest rate of growth in six months, with a 0.4% increase from the November figure, while the Empire State manufacturing index also presented a strong expansion. These strong signs of economic growth for the US increased belief that tapering of the quantitative easing programme will be extended at the next Federal Reserve meeting, with monthly bond-buying levels being reduced further. This optimism caused the US dollar to reach its highest point since mid-December against sterling while also recovering from a two-week low against the euro. Further key figures are expected stateside today in the form of a consumer price index (which will reflect inflation levels), unemployment claims from the labour market and Philadelphia Federal Reserve manufacturing index figure; Federal Reserve chairman Ben Bernanke will also be making a speech. Investors will continue to scrutinise data closely for evidence in support of tapering while also looking for clues from Federal Reserve members as to their views on what might happen. Call your trader now for the latest US dollar rates, as the outlook brightens.

Comments are closed.

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.

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.

Posted December 19th, 2013 by Charles Purdy

US starts to taper as US economy strengthens

The US dollar started yesterday with mixed fortunes, falling first against sterling and the euro, but making gains for the first time in four days against the Japanese yen in anticipation of the central bank decision in the evening. The Federal Reserve voted in favour of tapering its quantitative program by $10 billion a month ($5bn reduction in treasury purchases and $5b in mortgage bonds) starting from January. The central bank stated that the decision to taper was largely due to the improved outlook for the labour market, noting  that the unemployment rate will fall faster than previously thought whilst also raising its GDP growth forecasts.

Posted September 17th, 2013 by Charles Purdy

Us dollar continues to weaken

The US dollar has a poor start to the week, following the news that Larry Summers had exited the race to succeed Ben Bernanke as the chairman of the Federal Reserve. This left Janet Yellen in pole position to take charge who has a reputation for being much more supportive of accommodative monetary policy than Summers. This caused the US dollar to weaken against the majority of its most traded pairings as investors saw this as a sign that the Federal Reserve is likely to be less aggressive in its reduction of asset purchasing when the tapering program is finally put in to action. Today see’s the release of the core consumer price index data which could cause some volatility for the dollar, although speculation surrounding the potential for the Federal Reserve to taper its quantitative easing program on Wednesday evening is likely to cause a bigger reaction in the market. Call your trader now for the latest on the US dollar, as investors look towards events that may be crucial for the currency in the coming months.

© Copyright 2010 Smart Currency Exchange. All Rights Reserved.
Site by Iniquus