Currency Note US Dollar

US dollar strength to be tested by growth data

By Ricky Bean February 26th, 2016

It has been a strong week for the US dollar, having gained two cents against the euro and strengthened to exchange rates last seen in 2008 against sterling. This has been mainly due to sterling continuing to weaken, but also discouraging data on Eurozone’s inflation. Consumer Confidence and Flash Services Purchasing Managers’ Indices (PMIs) both tested the recent US dollar strength, with figures that did not meet expectations. Positivity returned on Thursday, with both durable goods figures and the weekly unemployment claims in-line with expectations.

Investors will be keen for today’s preliminary growth data, which is expecting to post further growth. Along with this release we can expect both Personal Spending and Personal Income data. Both are due to show growth, but any surprises could spell movement for US dollar markets