Currency Note US Dollar

US Dollar still under pressure

By Smart Currency July 2nd, 2014

The US dollar had a quiet day in itself yesterday, with no surprising data to cause a shift in its strength. The talking point of the day was a fresh six-year low against sterling as better than expected UK manufacturing data boosted sterling. The only major release for the day was the manufacturing Purchasing Managers’ Index (PMI) from the Institute of Supply Management, but this had little bearing on the strength on the dollar as it came out at the expected level.

Today sees more activity in the form of data, in both volume and influence. Firstly, the independent non-farm employment change figure will be released ahead of tomorrow’s official version. This is a good precursor of the official figure, and could cause movement in US dollar markets. US Federal Reserve Chair Janet Yellen also speaks later on. Given recent hints that low interest rates will remain in place, expect investors to dissect Yellen’s words for clues as to any potential changes by the central bank.