The US dollar fared well at the start of this week, as the core durable goods orders figure from the country beat expectations. This gave the currency a boost, notably reaching a ten-day high against sterling. This positivity rolled on into Wednesday, as the dollar made further ground despite the lack of fresh data to drive the markets. Yesterday saw this trend reverse somewhat, however, as the country’s economy saw a contraction for the first time in three years. As a result, hopes of a move away from the record-low borrowing costs were dampened, causing the dollar to weaken. Positive unemployment claims data, which was ahead of expectations, helped to reduce some of these losses, but negativity returned as the pending home sales figure missed its expectations.
Today is laid out as a calm end to the week, with no major releases due from the country. However, a few smaller pieces of data, including the Chicago Purchasing Managers’ Index and revised University of Michigan Consumer Sentiment could combine to affect the markets, even as events slow down.
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