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Posted November 14th, 2014 by Charles Purdy

US Dollar strongest against sterling in year

A quiet start to the week for the US dollar evolved into one of mixed results as activity increased later in the week. Slight increases on Monday were lost throughout Tuesday, where the Veteran Day bank holiday saw the dollar lose out against most, aside from a weakening Japanese yen. Mid week brought varied results, as data results from stateside continued to be hard to come by. Despite this, the currency made significant ground against sterling following the latest Bank of England’s inflation report.

Yesterday, US unemployment claims and job openings figure from the labour market came out behind expectations, while words from a member of the Federal Reserve also caused some negativity. William Dudley from the Federal Reserve Bank of New York,stated that he felt an early rise in interest rates would be a bigger risk than raising them too late, dampening speculation that we could see a hike in interest rates in the near future. As a result, the US dollar lost ground against the euro, but continued to strengthen against a weak sterling.

Overnight we heard US Federal Reserve Chair Janet Yellen speak, while today holds some final key releases ahead of the weekend. Firstly are the retail sales figures, alongside the import prices. Following these is the preliminary consumer sentiment data from the University of Michigan.

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 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.

Posted September 19th, 2014 by Charles Purdy

US Dollar has mixed week following Federal Reserve meeting

The US dollar had a mixed start to the week, with variable economic data prompting shifts in both directions. The first significant event of the week came as the Producers’ Price Index inflation figure dropped unexpectedly, weakening the US dollar. Alongside this, economic forecasts weighed heavy on the currency as they suggested any interest rate rises would be gradual.

Mid-week saw more disappointing inflation levels from consumers, weakening the US dollar further. The main event for the week came on Wednesday evening, as the Federal Reserve took centre stage. The central bank made clear that any decisions regarding potential interest rate rises would be data led and would not happen for a “considerable period” of time.

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