US Dollar strengthens as Federal Reserve member suggests interest rate hike could be near

Despite a mixed bag of data out of the US, the dollar still managed to make gains across the board yesterday. The day’s trading was dominated by Greek-related news, which saw the dollar appreciate as a result of continued euro weakness.

Durable goods, house prices and manufacturing figures all failed to meet market expectations, however the US dollar was bolstered by comments from US Federal Reserve member, Powell, who stated that a percentage point rate hike could still be possible this year. Moreover, new home sales released in the afternoon beat market estimates whilst last month’s figure was also revised upwards.

Today sees the release of US economic growth throughout the previous quarter of the year. With the latest estimate predicting a 0.2% contraction in the economy, any improvement on this figure could see the dollar continue its strong recent performance.