The US Dollar is little moved against the Pound and Euro following the release of balance of trade of data as many investors are holding off making moves until Wednesday when the Federal Reserve releases the minutes for its December policy meeting.
According to figures published by the Washington based Commerce Department, the USA’s trade gap narrowed more than expected in November. The gap decreased by 12.9% to $34.3 billion making it the smallest gap recorded since 2009. Economists had been expecting the deficit to widen to $40 billion.
The improvement is thought to be as a result of oil imports shrinking to a three year low as the US becomes more self-sufficient in regards to the commodity. Imports of industrial supplies and materials were also the lowest in three years. But auto and capital goods imports hit a record high.
An improved economic outlook and performance in Europe and Asia has also helped increase US exports.
Against the Canadian Dollar the ‘Greenback’ climbed to hit a one-week high after data showed that Canada’s trade deficit widened unexpectedly. Official data showed that the trade deficit widened to CAD$0.94 billion in November from CAD$0.91 billion in October. Analysts had expected the deficit to shrink to CAD$ 0.15 billion.
The US Dollar was unable to make gains against its peers as Investors are turning their attention to Wednesday’s minutes of the Federal Reserve’s December meeting and Friday’s U.S. jobs report for December for indications on the possible timing of further reductions in the Federal Reserve’s stimulus programme.
US Dollar (USD) Current Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6093
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7337
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0717
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.6410
The Euro/ US Dollar Exchange Rate is currently in the region of: 1.3628
(Correct as of 14:30 pm GMT)
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