US dollar starts poorly but boosted by good manufacturing data

The US dollar breached the 1.64 level against sterling first thing Monday but then staged a moderate recovery during the course of the day as positive US data boosted it. Following words from Federal Reserve Chairman Ben Bernanke, the most significant data for the day came out ahead of expectations. This was the influential manufacturing purchasing managers index (PMI), and the better than expected results gave some relief for the dollar after recent losses. Today is the quietest day for the US currency, with a couple of lesser releases, and as such investors will be looking to tomorrow and beyond where the majority of the week’s bigger events are packed in. Speculation over future performance could impact the markets, while any other smaller releases could lend a hand to this. Call your trader now for the latest sterling rates, on the calm in the middle of the storm.