Currency Note US Dollar

US Dollar supported by positive growth data

By Smart Currency August 29th, 2014

The US dollar had a varied week, trading within a fairly narrow range. Mixed durable goods orders figures towards the start of the week saw the dollar harbour some uncertainty, while encouragement was found through the consumer confidence figure. A disappointing showing came mid-week as a lack of economic data saw the dollar’s strength waiver, weakening from an 11-month high against a strengthening euro. However, this trend was reversed yesterday as growth figures were positive. They came out better than anticipated, and this broad measure of economic health bolstered the dollar’s performance. This was supported by unemployment claims that were on par with expectations, as investors continue to look for evidence supporting increased interest rates. The pending home sales also easily passed its predicted level, furthering the dollar’s advances against most of its partners.

Today closes out the week in relatively quiet fashion, although a number of smaller pieces of data could combine to impact markets. Personal spending figures are due, as well as the Chicago Purchasing Managers’ Index, as well as Consumer Sentiment data from the University of Michigan.