US manufacturing and services came out yesterday better than expected, which is a contributory factor in the increase in value seen from the Dollar. The USD report below looks at some of the reasons behind this increase, the table below shows the difference in Dollars you could have achieved when buying £200,000.00 during the high and low points yesterday.
|Currency Pair||% Change||Difference on £200,000|
The US dollar has seen a major rally and remains very well supported after heated relations between the US and China on trade now appear to be cooling. Treasury Secretary Steven Mnuchin stated that China and the US had reached a consensus on taking effective measures to slash America’s trade deficit with China which has helped see the dollar rally.
Donald Trump tweeted yesterday that “There will be big news coming out soon for our great American Autoworkers. After many decades of losing your jobs to other countries, you have waited long enough!” The strong rhetoric appears to be working in the dollars favour for the time being and the economic data is proving resilient.
US manufacturing and services data released yesterday both arrived better than expected with a sizeable pick up in the services sector. What was particularly positive about the data was that the surveys pointed to strong business optimism which currently sits at a three year high. This could mean a positive run of data in the coming months which could prove positive for the Dollar.
Initial jobless claims released later today are expected to show a small fall in the numbers which should prove positive for the dollar. FOMC members Bostic and Harker will be speaking later today and their views on the economy and when the Fed should next hike are likely to cause a reaction for the dollar. More FOMC members will be speaking tomorrow and could make for an interesting end to the week for Dollar exchange rates. The calendar for US data next week is particularly busy though with GDP data and non-farm payrolls. More strong data should only help the dollar make gains and support the view that the US Fed will continue to hike interest rates this year.
For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.
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