Currency Note US Dollar

US Dollar moves sideways

By Ricky Bean July 24th, 2015

The US Dollar clawed back some of its strength yesterday as initial jobless claims data was better than expected. A positive reading for the CB Leading Index also helped to strengthen the US currency, particularly against sterling.

A potential interest rate hike would be data dependent, so poor data from the UK fuelled some gains for the US currency, with sterling losing ground against most of its major peers. The effect of a strong dollar has cut into profitability for businesses, including Apple and American Express. If the US currency continues to hold strong on the whole, we could see US exports falter, which, in turn, could weaken the US economy.

There is, again, little significant data out today that has the potential to affect the dollar’s performance. As has been the case this week, investors will turn to events elsewhere for guidance on any potential dollar movement.