Currency Note US Dollar

US Dollar on a roll

By Smart Currency May 20th, 2015

A positive day for the US dollar had been expected on Tuesday given its recent strength and the expectation of positive US data releases. However, US dollar strength was boosted against sterling and the euro, thanks to the confirmation of the Quantitative Easing programme in the Eurozone, and the news that the UK was experiencing negative inflation – as well as US data releases meeting expectations, as both building permits and housing starts increased on the previous month.

US Federal Reserve member Evans speaks again this morning, ahead of the release of the Federal Reserve meeting minutes. The spotlight is expected to be on when the Federal Reserve may act and increase interest rates – now forecast to be pushed back until the start of 2016. If we do see quite hawkish comments, the US dollar could continue to strengthen on the back of this.