Currency Note US Dollar

US Dollar has a good week

By Smart Currency July 25th, 2014

The US dollar started the week slowly, with markets tentative ahead of the inflation data release on Tuesday. The results showed that the overall level had remained at 2.1%. Alongside this, the existing home sales showed a better-than-expected figure – the data sets combined to drive the dollar to the highest level of 2014 against the euro. This trend was also helped by market speculation, as investors focused on long-term disparities between economies and future prospects. A quieter day then followed, with the dollar remaining high against the euro.

Yesterday saw further strong performance from the US currency, thanks to positivity from the labour market. Given its importance with regards to interest rate rises stateside, the better-than-expected-unemployment claims helped to propel the dollar to its highest level in a month against sterling, as well as extending to the highest since November against the euro, despite worse than anticipated new home sales and manufacturing figures. Today closes out the week with a single data set of note: core durable goods orders. As such, investors will continue to look for further encouragement, whilst maintaining their longer-term viewpoints.