020 7898 0500The US dollar had a positive day, rising on the back of strong economic data from the country helping the currency hit seven week highs against the Japanese yen, following news that the manufacturing sector had reached better than expected levels – showing the fastest expansion since June 2011. This added further to speculation that the Federal Reserve may begin tapering its quantitative easing program this month as these indicators point to a stronger and stronger economy. Current movements of the currency are in line with this, as a result, some investors believe the tapering has already been “priced in” to the market. Today we await the trade balance data which could well influence the currency should it add to this list of support for tapering. More influential however, is likely to be the Beige book released this evening which will reveal the state of the local economies from all 12 Federal Reserve Banks. Get in touch with your trader now for an up to the minute price on the US dollar, as tapering speculation dominates the strength of the currency.
