The US dollar strengthened on the whole for the third week in a row last week, posting gains against all of its peers apart from sterling which benefitted from the belief that the UK will vote to stay in the European Union. This was due to positive messages regarding the likelihood of an interest rate hike. Thursday evening saw Federal Reserve Bank of New York President William Dudley reiterating that a hike could come ‘sooner rather than later’. A lack of Tier One data led investors to look to potentially positive G7 meetings over the weekend.
The US dollar is likely to remain in its holding pattern until Thursday, when the first real data of note is released, in which we will see the release of Durable Goods orders. These are expected to show slower growth compared to the previous month. On Friday we can look forward to preliminary growth figures, which are expected to show faster growth than in the previous quarter.
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