It was a good week overall for the US dollar as it strengthened against the pound by 1% and almost 2% against the Euro. It was an almost flawless week for the US in terms of economic data, with all major releases either matching or exceeding expectations, including unemployment claims yesterday, which were as predicted. The Consumer Sentiment is out today and is expected to be the same as last month’s.
With continued strength like this, it is no wonder that some major banks, including the likes of Morgan Stanley and RBS, are forecasting a cross over between the dollar and euro. One false move with Greece and we could see this happen a lot sooner.