Looking at the data due to come throughout this week it does seem likely that the greenback will continue to show its ruthless edge against its major currency counterparts.

Somewhat of a trademark we have seen throughout 2018, key US housing data came out expectedly high during Friday’s trading, highlighting once again the foundations of a US economy that showing no signs of slowing down in the immediate future.

Currency Pair% Change in 7 daysDifference on £200,000
GBPUSD0.9%$2,400 USD
Business confidence in the US has taken a slight hit

Thursday could prove to be the first real test of the Greenback’s resolve for the year with the ISM (Institute for Supply Management) business condition reports due for release early in the afternoon. As a whole, it has been fairly well documented that business confidence in the US has taken a slight hit from the uncertainty Trump’s tenure and indeed his handling of international trade negations, so it will be interesting to see how the dollar reacts to this release.

Personally, I still feel the major data from the jobs market also due on Thursday will still set the greenback off on a high for 2019, given they have arguably bolstered the dollar’s value consistently since the start of September. Those looking to buy dollars may want to consider their positions.

Powell and Trump to continue to shake the markets in 2019

I do however feel, looking slightly longer term, that it is worth highlighting the market’s relationship with the Federal Reserve’s Chair Powell. It has certainly been interesting to see how quickly investors seem to latch on to the Fed’s head’s words and we have certainly seen a considerable amount of volatility from his conflict with President Trump in the final quarter of this Year.

The heavy fall in stocks and bond yields on the US market in recent weeks just highlights the level of unease and I wouldn’t be surprised to see this volatility filter through to the currency markets, particularly as the political sphere in Europe becomes clearer.

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