Currency Note US Dollar

Uncertainty puts US dollar under pressure

By Smart Currency September 23rd, 2013

Talk of whether or not the US will commence “tapering” in October will start to build as from now. However this is also likely to be joined by discussions about the US debt ceiling and the need to increase it. Both of these will lead to increased US dollar volatility and unpredictability so we can expect some rapid movements in the next few weeks. On Friday, the US dollar managed to claw back some of its weekly losses, enjoying gains against all of its most traded partners after a member of the Federal Open Market Committee stated that the decision to refrain from tapering was a close call, and that its introduction is possible for October, albeit at “small” levels. Today starts off with nothing majorly important, with flash manufacturing purchasing managers’ index data being mildly of interest. Tomorrow could see more volatility, with consumer confidence data giving further indication to the state of the economy. Thursday brings more influential releases, with monthly core durable goods orders as well as new homes sales. Thursday could prove the most significant, with the unemployment claims continuing their influence giving their ties to tapering, and the monthly pending home sales adding more to the agenda. Friday then tails off somewhat in the importance scale, with words from more Federal Open Market Committee members, and monthly personal spending data to finish things off. Get in touch with your trader now for the latest on the US dollar, as it tries to strengthen after a difficult last week.