Currency Note US Dollar

US Dollar continues to soar following strong US data

By Ricky Bean November 3rd, 2014

The US dollar strengthened to a two-year high against the euro, near one-year highs against sterling and soared to four-year highs against other major currency pairs. This was driven in large by decisions by the central banks last week in the US and Japan. With the US Federal Reserve ending its quantitative easing cycle and the Bank of Japan voting to increase its monetary stimulus in an attempt to revive its economy, the divergence in monetary policy caused mass selling of the Japanese yen and mass buying of the US dollar.

The US dollar also benefitted significantly form positive data with Chicago PMI and consumer sentiment figures helping to support the US dollar

There is a raft of data out of the US this week which could impact the US dollars movements. Key to the currency’s performance will be the non-farm pay rolls figure this Friday, which is forecast to rise to 233,000 – in comparison to 250,000 in September. Before then we will have manufacturing and services PMI data, more labour data and several members of the Federal Open Market Committee (FOMC) will also be speaking.