It was a quiet day for the US Dollar in terms of US data releases, but quite the opposite for the US Dollar in terms of rate movement – gaining significantly against both sterling and the euro.
Although there were no major data releases, the US Bank Stress Test Results were released, providing insights on a key element of US financial markets. All banks passed apart from Deutsche Bank and Santander but the level of failure seemed to be such that any “sanctions” would be limited as they are making the right sort of progress to passing the test.
However, US Dollar strength was apparent throughout the day, as it continued its momentum gained from last Friday’s employment change figures.
We can expect a more eventful day for data releases with the US Core Retail Sales figures out today – the biggest US data release expected for the week. We anticipate that this release will show a positive figure for the first time in 3 months, so it will be interesting to see if this has any further impact on the strength of the US currency. Weekly Labour data is also due, which has shown increases against forecasts, along with the Import Prices and Business Inventories.
If you need to buy or sell US dollars, make the most of its current strong position – but remember, this may change! Contact your trader now for live rates, news and currency-purchasing strategies.