The dollar was boosted yesterday following the release of data showing that the number of new home sales in the US had increased significantly over the past month. The sale of new homes has a wide-reaching effect on an economy as a number of industries are involved in the purchase and furnishing of a home; it also shows confidence in the housing sector. Consequently, the dollar performed well against its major currency partners, pushing sterling away from a four-year high against the US dollar despite positive growth figures out of the UK.
Today we are likely to see more movement from the dollar with the release of unemployment claims. This afternoon also sees the testimony from Janet Yellen, the US Federal Reserve Chair, which may provide insight into future monetary policy for the US. This could potentially have significant impact on the strength of the dollar.
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