The US Dollar has strengthened against the majority of its most traded peers, rising for a fourth day ahead of Tuesdays data releases that are expected to boost speculation that the Federal Reserve will taper its monetary easing policy.
Against the Euro the US Dollar advanced to 1.3087, against Sterling it advanced to 1.5369
The ‘Greenback’ rose to a seven-month high against the Swedish Krona and soared to its highest level since September 2010 against the Australian Dollar. The currency is expected to rise further if tomorrow’s durable goods and house price data show signs of improvement. Any good news for the US economy will give weight to the possibility that the Fed will announce a reduction to its stimulus plans.
“The fundamental picture for the Dollar is clearly positive,” Marcus Hettiger, currency strategist at Credit Suisse Group in Zurich told Bloomberg news. “The expectation that the Federal Reserve may start reducing asset purchases leads to higher US yields supporting the Dollar.”
The Durable Goods data is expected to show that orders rose by 3% in May after a revision upwards to 3.5% in the previous month. The S&P/Case-Shiller Index of home values for 20 US cities is expected to climb by 10.6% in April, following on from March’s 10.9% gain, the biggest since 2006.
The Dollar’s upward trend looks set to continue for the foreseeable future.
“Following the more hawkish-than-expected FOMC meeting last week, we expect the Dollar to remain supported over the coming week. There is little in the way of data to distract the market.” Said global financial services firm Morgan Stanley.
US Dollar (USD) Current Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6493
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7641
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0809
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 97.6110
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0531
(Correct as of 14:35 pm GMT)
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