The US Dollar has been given another boost after US Gross Domestic product numbers for the second quarter performed better than expected. More on this and and an update on the controversy surrounding President Trump and his ex lawyer in the below USD report, with the table showing the range of exchange rates during trading yesterday.
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GDP is now sitting at an impressive 4.2% for the year which is the best performance in almost 4 years. The strong data will prove reassuring for the US Federal Reserve, currently contemplating whether to raise interest rates at the September meeting. The healthy numbers would now suggest there is a high chance the Fed will raise interest rates which should support the Dollar further. Although the Pound rocketed by over 1% against the US Dollar yesterday taking levels back over 1.30 this was in fact down to positive commentary on Brexit which has given some optimism that a deal will be struck.
US jobless claims are released this afternoon as well as personal consumption expenditure.
US President Donald Trump still faces a rocky ride ahead in the political context after his ex-lawyer Michael Cohen pleaded guilty to tax evasion and violating election laws. He also acknowledging the so called “hush money” payments to two women during the presidential election campaign.
The real problem for the President is that Michael Cohen is pointing the blame at him directly. Any new developments could ultimately see Donald Trump impeached. If any member of the House of Representatives suspects the president is guilty of treason, bribery or other high crimes or misdemeanours a resolution of impeachment can be introduced although a majority of 51% would need to support it before it even goes to trial.
The pressure is likely to mount on the President and there is a campaign being led by Democrats to have the President impeached.
Any developments will really all depend on whether the Republicans want to impeach him. If the President was found guilty then Vice President Mike Pence would take the reins to complete the term so from a currency perspective any market reaction could prove limited in this outcome.
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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