Last week’s positive non-farm payrolls report boosted the US Dollar against its rivals, and the safe-haven American currency continues to enjoy a bullish relationship with the majority of its most traded peers.
The US Dollar Exchange Rate was trading in the region of 0.6701 against the Pound as of 14:35 GMT
With the release of minutes from the Federal Reserve’s latest policy meeting imminent and with Fed Chairman Ben Bernanke due to make an announcement, the US Dollar surged to a five-week high against the Yen.
Meanwhile the Dollar Index was trading close to a three-year high.
Last week’s unexpectedly dovish statement from the Bank of England saw the Pound soften against its US peer, and while Sterling gained modestly today on the expectation that this week’s UK data will show that Britain’s economic recovery is gathering momentum, the currency didn’t move far away from its almost four-month low against the ‘Greenback’.
The US Dollar to Pound (USD/GBP) Exchange Rate hit a high of 0.6731
Although economists are expecting tomorrow’s UK industrial production figures to show growth, the mounting odds of the Federal Reserve opting to taper stimulus within the next few months could limit Pound gains in the days ahead.
This week’s Fed related events (the meeting minutes/Ben Bernanke’s speech) may shed light on the currently sketchy timeline for reining in bond buying. Both take place on Wednesday.
As forex strategist Ian Stanley observed: ‘The Fed’s tapering speculation is bolstered by the strong jobs data last week, and this will be supportive for the Dollar. The currency has gained substantially recently and there may be some correction along the way but that will not change a longer-term outlook of the Dollar’s strength.’
Although today’s US consumer credit data will be of interest, the most influential pieces of US economic data due for release this week include Thursday’s monthly budget statement and Friday’s University of Michigan confidence index.
Current US Dollar (USD) Exchange Rates
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The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6701 >
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7783 <
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0994 <
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 101.0700 >
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0551 <
The Pound Sterling/ US Dollar Exchange Rate is currently in the region of: 1.4919 <
The Euro/US Dollar Exchange Rate is currently in the region of: 1.2846 >
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9097 >
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9475 >
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.7766 >
(Correct as of 14:35 GMT)
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