Currency Note US Dollar

A busy week ahead for the US Dollar

By Ricky Bean August 27th, 2013

Friday was a disappointing day overall for the US dollar, with notable losses experienced against both the Japanese yen and the euro. This came following the shock data results regarding new homes sales, which showed that purchases on new homes stateside plunged to their lowest levels for more than three years. This reaction may well be magnified following the minutes from the Federal Open Market Committee’s meeting – US economic data since having expected to be closely scrutinised for implications on the likelihood of beginning the tapering program. This week is laden with data from the US and as such the currency is open to a large degree of volatility, depending on how these results fare. Yesterday we saw core durable goods orders data fall significantly short of market predictions, with a drop in orders of 7.3% when only a 4% drop had been anticipated. Today holds results from a consumer confidence survey; on Wednesday there will be monthly pending home sales, and Thursday holds possibly the most critical day for the currency, as there is both preliminary GDP and unemployment data released – two big indicators on the country’s economy. Get in touch with your trader now for the latest price on the US dollar in a busy week with the potential for shifts either way in the currency.