Currency Note US Dollar

US Dollar benefits from Thanksgiving

By Callum Holmes November 28th, 2014

The US dollar had a mixed week, with a dip mid-week, which was sandwiched by more positive days. The week started in solid fashion, holding near its four-and-a-half-year highs against a basket of major partners after a positive end to last week.

Mixed data releases on Tuesday saw the dollar decline. The most significant result was arguably the growth figure which showed an unexpected increase to 3.9%. However, this failed to add to the dollar’s performance, and lower-than-anticipated consumer confidence ultimately saw it lose ground.

A busy Wednesday also brought results that were largely disappointing. The key results from the durable goods orders, unemployment claims and new home sales were all behind the predicated levels, again weighing down on the currency. Less significant data did little to help the dollar, as the Chicago Purchasing Managers’ Index and the University of Michigan’s Consumer Sentiment continued the poor form. Yesterday saw the dollar gain slightly, despite its own markets being closed due to Thanksgiving. Today is similarly quiet, with no further data due to affect the dollar directly. As such, events elsewhere have the potential to influence dollar strength.