Economic releases for US last week mainly revolved around the Non-Manufacturing ISM data which was posted on Wednesday. A result above 50 is positive, also known as bullish which shows the comfortable level of growth the US has experiencing with a recording of 55.1%.

Currency Pair% Change (Month)Difference on £200,000

Whilst this figure is down 1.8% from 56.9% in May, the dollar is living up to its expectations as a safe haven currency. Statistically, the US dollar has been experiencing economic growth for the 119 consecutive months which has bolstered investor confidence in the currency even despite the slight economic slowdown it has been experiencing in recent years.

$3 Trillion to be Spent on Covid Recovery

Today at 12:30,  Non-farm Payroll data is released. This provides the number of new jobs created, it is a strong indicator of economic growth and many reviews are formed based on this information. The reading in March showed  promising growth at near 3% whilst predictions for today’s reading are set to diminish to -1%, showing a reduction in jobs and unemployment for that quarter.

This again falls in line with other negative economic data patterns as mentioned prior, which ultimately point to the possibility that US growth may continue to ease off in the future.

Should clients feel that they may want to discuss any trading opportunities they may have regarding the USD, please get in touch with us to see how we could assist you.

US Iran nuclear tensions escalate

Tensions between the US and Iran have risen with previous disagreements between the two nations exacerbated by Iran’s recent developments over its nuclear weapons. The Iranian President Hassan Rouhani has stated that starting on Sunday, Iran would be increasing its uranium enrichment process above the 2015 limit enforced by US sanctions in the nuclear program deal.

Due to the aforementioned safe haven currency status that surrounds the USD, in times of conflict investors transfer their funds to safer, less volatile currencies which will may potentially cause further strength to the dollar.

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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.