US dollar strengthens as investors seek safer havens

The US dollar made the most gains for the week thanks to the unrest with Syria and the perceived likelihood of US military action. As such, investors looked to the US dollar – as one of the safer options in the market – to lower their risk, which would be an important factor should any military action be taken over the alleged use of chemical weapons. Data from the US showed that pending home sales came out significantly below expectations and whilst it had little immediate impact on the US dollar amid the Syria situation, it may have a long term effect due to the fact that it detracts from the promising economic picture that supports the introduction of tapering. Today, preliminary GDP figures and unemployment claims are due out from the country – both significant pieces for the health of the economy. However, further developments with Syria could be the most important factor for the US dollar. Get in touch with your trader now for the latest price for the US dollar, with plenty going on to influence its performance.