The US Dollar has managed to protect the incredible gains it made over its major currency counterparts last week as positive economic data has continued to strengthen the greenback’s position. Since last week’s fed rate hike, the Pound has slumped to multi year lows of 1.23 with the euro still stuck on the 1.03 mark. Yesterday saw positive existing home figures released by the National Association of Realtors as Home buying activity increased in November, for the third month in a row. Real estate is always seen as a great indicator of the long-term health of an economy by investors and these figures will only have reinforce the greenback’s Safe Haven status.
The majority of analysts are now predicting that the US will lift a share of the heavy trade restrictions imposed on Russia back in 2014, as the president elect seeks to rebuild bridges with Putin going into 2017.
This could spark further trade deals with Russia in the near future and bolster US Dollar strength as a result.
Furthermore, Trump announced his meeting with Carlos Slim. Having continually vilified the Mexican billionaire in the buildup to his successful campaign to become president elect, this peace making gesture came as a surprise to most but is being seen by some analysts as a statement of intent by the US leader to maximize the revenue streams offered by Mexico. It is unclear however if he will be renegotiating immigration policies as a result.
As the week comes to a close there is a fair amount of key economic data that could present quick spikes in the market for US Dollar buyers to capitalise on.
Key consumer figures as well as GDP stats will be released over the course of the afternoon. Make sure you notify your account manager here who can help build a plan of action to maximise your returns.
If you need to buy the US Dollar before the New Year, a number of economic releases today could present some short term buying opportunities. Get in touch with your dedicated broker this morning on 01494 725 353 to learn more. Alternatively, you can email me at firstname.lastname@example.org.
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