US Dollar trading at its highest level since 2002

Although the Pound is trading against the US Dollar at around an 8-week high, the US Dollar has been performing well itself against all other major currency pairs.

The US Dollar index, a measure of the value of the US Dollar against a basket of other major currencies, has hit its highest level since 2002. A lot of this bullishness can be attributed to improving sentiment towards the US now the highly contested Presidential Election is over, coupled with some impressive economic data out of the US.

The Pound was the only gainer against the Dollar last month which has come as a surprise to me as many had warned of a Dollar and US equities sell-off in the unlikely event that Trump won.

The President Elect has had a mixed week after aggravating relations with China publicly by congratulating the Taiwanese president on her election. On the other hand, he’s endeared himself to many by saving over 1000 jobs at Carrier Corporation, a ventilation specialist based out of Connecticut. This took place after Trump cut short a holiday and threatened to put a 35% tax on the company if it shifted production overseas. Perhaps this is a sign that he’s actually going to do some of the things he said he would during his election campaign.

Moving forward I do expect to see Trump’s policies impact USD exchange rates as he does appear to be staying true to the anti-globalist narrative that won him the election. This is where making your account manager aware of your price targets can really benefit you as markets can move instantly when a prominent figure says the right/wrong thing, as we’ve seen many times this year.

Key events out of the US this week

I expect Thursday’s Initial and Continuing Jobless Claims to be the biggest news releases for the US Dollar this week. Both figures will be released at 1.30pm and the figure for new claims is expected to show 268k. Expect any deviations from this level to move the markets and feel free to get in touch if you wish to plan around this time.

The Pound remains favourable against the US Dollar despite expectations for a US interest rate hike next week. The Pound has gained over 3 cents against the US Dollar in the last month presenting excellent opportunities for US Dollar buyers. Call us today on 01494 725 353 or email me here if youd like to discuss an upcoming transfer.


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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.