Economic data from the United States allowed the US dollar to rally against its major peers, including the Great Britain pound and the Japanese yen, yesterday and to maintain gains today. The currency fell against the euro but not before reaching the highest price since September.
A range of US macroeconomic indicators was released yesterday, and all of them were positive. The data followed the hawkish Federal Reserve minutes that were released on Wednesday. All these factors contributed to the strength of the greenback.
It was surprising to see that the dollar was unable to maintain its rally versus the euro. The likely reason for this is the upcoming speech of Fed Chairwoman Janet Yellen at the Jackson Hole symposium. Most market analysts believe that the speech will also be positive for the US currency and the current drop versus the euro was just a bit of profit-taking.
EUR/USD traded at 1.3279 as of 2:47 GMT today after rising from 1.3259 to 1.3280 yesterday. GBP/USD was at about 1.6575 following the drop from 1.6593 to 1.6579. USD/JPY traded near 103.78 after rising from 103.74 to 103.84.
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