Currency Note US Dollar

Poor data and rhetoric undermines the US dollar

By Smart Currency November 15th, 2013

The week started quietly with Veterans Day on Monday and key data releases have been limited. Yesterday was the busiest day for data with both the trade balance and the unemployment claims missing anticipated levels. This weakened the US dollar, a trend compounded by words from Janet Yellen. As the nominee for chairman of the Federal Reserve, her views today were hotly anticipated, and in her testimony she stated that she would not look to remove the stimulus too soon. This commitment to the quantitative easing did little to help the currency, as its continuation has been weighing down on the dollar. A few smaller pieces of data today could well provide some volatility at the end of the week, such as the Empire State Manufacturing Index and the import prices report, while further reaction to the long term outlook will still be on investors’ minds. Get in touch with your trader now for the latest on the dollar, as a quietly disappointing week ends.