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Posted November 7th, 2014 by Charles Purdy

US dollar continues to strengthen

The US dollar has had a roller coaster week, seeing shifts in both directions over the days. The currency started strongly, mainly thanks to the Purchasing Managers’ Index (PMI) data from the manufacturing sector. A better-than-expected expansion helped the dollar rise to its strongest in almost seven years against the Japanese yen, while also reaching fresh two-year levels against the euro, as the optimism over the US economy helped against its perceived weaker counterparts.

This trend was reversed on Tuesday, as the trade balance showed a larger than expected deficit. Mid-week saw a return of strength for the US economy, with both the election results and positive labour data from the independent non-farm employment change adding to the currency’s performance.

Another positive day came courtesy of yesterday, with the dollar gaining ground on the vast majority of its major partners. The labour market was again the biggest influence, this time in terms of the unemployment claims figure. This came out better than expected, ahead of today’s final – and main – release, the ever important official non-farm employment change figure, which is due this afternoon alongside the unemployment rate.

Following on from this, investors will be keen to hear from Federal Reserve Chair Janet Yellen, in terms of her thoughts on the recent hopes of interest rate rises. Investors will also be scrutinising her words for any clues as to the central bank’s plans in terms of a potential interest rate hike.

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 November 4th, 2014 by Charles Purdy

US data positive

The US dollar had a strong start to the week yesterday, as positive data supported hopes of an interest rate rise. The manufacturing Purchasing Managers Index (PMI) from the Institute for Supply Management showed a better-than-expected expansion, which helped the dollar make gains against the majority of its major partners. The US currency rose to its strongest in almost seven years against the Japanese yen, whilst also reaching fresh two-year levels against the euro, as the optimism over the US economy helped against the perceived weaker counterparts.

Today sees just the one major release from the US to potentially impact markets, in the shape of the trade balance.

Posted October 30th, 2014 by Charles Purdy

US dollar boosted by Federal reserve announcement

The Federal Reserve monthly meeting announcement surprised the markets last night. It wasn’t that they confirmed the end of quantitative easing, this was widely expected, it was the language they used to describe the US labour situation which had shifted from that of saying there was significant underutilization to stating that they saw labour resources gradually diminishing. This increased the markets belief that interest rates were coming sooner rather than later which immediately say the US dollar gain significant ground across the board and head back towards four year highs against a basket of major currencies.

This is the second last Federal reserve meeting of the year, the next one is on December 16th.

Posted October 1st, 2014 by Charles Purdy

US Dollar still in the ascendancy

The US dollar’s fortunes were mixed yesterday, affected by both local and international events. Morning activity was positive for the currency, as it reached its strongest level in two years against a weakening euro, even pushing below 1.26 at one stage, while also gaining against sterling. However, fortunes were reversed somewhat later in the afternoon, as both the Chicago Purchasing Managers’ Index (PMI) and consumer sentiment data failed to reach their anticipated levels with the data dampening hopes for an interest rate rise somewhat.

Today, the main release will come from the labour market, as the independent variant of the non-farm employment change is released.

Posted September 22nd, 2014 by Charles Purdy

US Dollar still ‘King of the Castle’

The US dollar had a positive day on Friday, thanks to the long -term outlook over interest rate rises and the approaching end of quantitative easing. Despite a lack of data, the dollar strengthened against the majority of its major partners, setting itself up for the longest run of gains since 1967. With continued reaction to the Federal Reserve raising their funds estimate for the end of 2015, and the indication that when rates start to rise they should expect to do so steadily towards 3% by the end of 2016, the dollar closed out a tenth consecutive week of gains.

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