The US dollar managed to end yesterday above its opening levels against most of its partners, thanks to both data and longer-term speculation. While the manufacturing Purchasing Managers’ Index from the country came out only as expected, the dollar still managed to make slight gains across the board. Helping this trend was the speculation over the possibility and timescales of a borrowing cost increase. Words from US Federal Reserve member Charles Plosser noted that he thought these increases could come sooner than expected, finding encouragement from last week’s encouraging Purchasing Managers’ Index (PMI) from Chicago. This positivity continued in to yesterday as investors gained strength from this sentiment.
The dollar may have to rely on this to sustain its gains going into today, with little notable data to support the currency. The only event will be the mildly important factory orders figure, with investors no doubt already looking ahead to the more influential labour data at the heel of the week.
If you are looking to buy or sell US dollars I suggest contacting your trader now for live rates, news and currency-purchasing strategies.