The US dollar has been on quite a run over the last few years and many had predicted that this year that run would grind to a halt.
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So far those predictions have ended up being wrong as the dollar broke back through the 1.30 interbank rate against sterling earlier this week and has remained below this level for a few days now.
Tomorrow we have the release of Gross Domestic Product (GDP) data where expectations are for a slight drop from 2.2% to 2.1%, however the dollar does still remain appealing even with a slight decline in growth.
With global concerns over trade wars in general and many economies feeling the pinch with their economy, traders are generally still favouring the US dollar.
Positive Home Sales data earlier in the week also backed up that the US economy is still on good form.
Next week brings the Federal Reserve (Fed) Interest Rate Decision and expectations are for the Fed to hold off on any further hikes at this stage.
Donald Trump had actually been putting pressure on the Fed to make their next interest rate move a cut however it does seem like for the time being the Fed will be happy with respectable economic growth and an unchanged interest rate.
What will be of great interest will be any comments on how they plan to approach economic policy later in the year and any hints that a cut could be considered if the economy takes a turn for the worse.
With markets moving on speculation as well as fact even the hint of a change of stance can impact a currency, we have already seen the Fed move from expectations of three hikes this year down to no hikes this year, so should there be a chance that cuts could happen later in 2019 then the dollar may weaken accordingly.
To contact one of our experienced brokers to discuss dollar exchange rates feel free to contact our trading floor using the form below.
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