Currency Note US Dollar

US Dollar has a respite

By Ricky Bean January 30th, 2015

The US dollar has seen largely mixed fortunes this week. Durable goods orders data released on Tuesday showed an unexpected decline of 3.4%, having been forecast to increase slightly, which worried markets as it seems to indicate that US company exports are being hurt by the strength of the dollar. This contrasted with better than expected outcomes for consumer confidence and for new home sales.

The Federal Reserve meeting on Wednesday showed no change in interest rates yet, as was expected, but also showed no real change in their view going forward. While this didn’t satisfy investors’ hopes for a clearer idea, it maintained the view that they will happen sometime this year. Support for this was found yesterday as the unemployment claims were better than expected, keeping up the positive data that has been adding encouragement for increased interest rates.

Final activity is due later this afternoon, with the growth figure showing an indication of overall economic health. As such, further good results could help the dollar at the end of a mixed week.