Currency Note US Dollar

US dollar is unloved

By Smart Currency September 13th, 2013

The US dollar performed poorly this week as it slipped considerably against sterling and the euro. Speculation surrounding a possible US intervention in Syria dominated the news headlines early in the week and caused some volatility in the currency markets. As military action looks less and less likely a degree of risk appetite has returned to the markets, reducing demand for ‘safe haven’ currencies such as the US dollar. The weakness experienced towards the end of last week which resulted from poor labour data continued throughout this week. The trend altered slightly yesterday as better than expected unemployment data came through which contrasted with the poorer Non-farm payrolls data of last week. This caused the US dollar to trade within a narrower range, although little was seen in the way of appreciation against major trading partners. It remains to be seen if a better day lies ahead and a host of important data sets are likely to play their part. Expect volatility as monthly retail sales data, consumer sentiment data and inflation figures are released today. Call your trader now to see if US dollar volatility works in your favour.