US budget agreement boosts the dollar

The US dollar was buoyant yesterday following increased speculation that we could see the Federal Reserve taper its quantitative easing program at next week’s central bank meeting. The US currency logged gains against the majority of its most traded partners, thanks to positive negotiations over next year’s budget which, if approved by both chambers of Congress, will reduce the severity of the automatic spending cuts. As a result, more investors are now betting that the Federal Reserve reduce its bond buying process next week. Today brings even more influential releases, in the form of both retail sales and unemployment claims. With increased pressure on the central bank to taper at next week’s meeting, positive economic data could prove crucial, with particular importance continuing to be placed on the labour market. Call your trader now for the latest US dollar rates, as its looks to bolster its future hopes in the short term.