Currency Note US Dollar

A busy week ahead for US Dollar

By Smart Currency July 29th, 2013

The US dollar traded in a fairly narrow range on Friday in absence of any significant market release. Revised Consumer Sentiment figures came in marginally better than expected, but had only caused slight variation for the dollar. We have a raft of employment data released this week with the the headline release being the non-farm payrolls data released on Friday which has caused a great deal of volatility in the past – especially in light of the Federal Banks rhetoric that monetary policy will stay loose until the labour market shows significant improvement. This rhetoric will be scrutinised to a greater extent when the Federal Open Market Committee (FOMC) meet on Wednesday. Traders hope that the FOMC statement could well give greater clarity as to when the tapering of its asset purchasing program may begin. Advance second quarter GDP figures, which also come out on Wednesday, are estimated to show growth of 1.1% although some key figures have expressed more pessimistic views following the inconsistent run of economic data that we have seen from the US recently. Other data released this week includes figures showing the number of homes pending sale, consumer sentiment statistics and manufacturing PMI. An extremely busy week for the US, so call your trader now to see if the dollar can start to make up some of the ground it has lost.