US Dollar under pressure, how will it react to important data releases?

Last week the US Dollar weakened by just under one cent against the Euro and moved to 5 year lows against sterling. The currency was affected by Wednesday’s Federal Reserve announcement for the USA’s economic forecasts, which confirmed that the interest rates across the country are set remain low. Positive economic data did little to change the position of the currency, although if the situation in Iraq becomes worse this could strengthen the US dollar given its safe haven status.

At 3pm today we are expecting data from the US property sector, looking at existing home sales; forecasters expect it to rise by 0.1M to 4.74M. Further insight on the health of the US property market is expected to be released on Tuesday, also at 3pm. The data set is expected to come in line with the existing home sales, a slight increase to 440,000. Finally, mid-week data on durable goods orders will be released; this is expected to increase month on month to 0.5%.