The US dollar had a quietly mixed day, with no overriding trend emerging in the dollar markets. The US currency fell once again versus sterling towards last week’s two-and-a-half year lows as investors bet on positive UK data. This was the most significant movement of the day for the dollar, with lower-than-expected New Home Sales figures from stateside reflecting negativity on the US currency.
Today we see two main points of interest, firstly in the form of the core durable goods orders, followed by the Consumer Confidence Index from the Conference Board. With tomorrow’s Federal Open Market Committee meeting at the fore of investors’ minds, data is sure to be closely scrutinised as investors look for encouragement that the US Federal Reserve will decide to further increase the level of their tapering.
This decision, as well as the size of any such action, would be a key long-term event for the currency, and will be likely to have effect on the markets. Tapering as a result of an improving US economy may eventually lead to a rise in interest rates and higher borrowing costs for businesses, so businesses may want to decide whether to buy or sell US dollars in advance.
Thinking of buying or selling US dollars? Get in touch with your trader now for the latest US dollar rates, as data precedes the main event of the week.