The US Dollar softened against the Pound and fell against the Euro after comments made by the International Monetary Fund boosted demand for riskier assets.
The latest data released in the world’s largest economy continued to support the view that the USA is making a sustained and strong recovery. The markets however didn’t react too strongly to the positive news due to many traders and investors winding down for the Christmas holiday season.
According to the Commerce Department, consumer spending in the US climbed by 0.5% in November, its largest increase in five months and marked the seventh consecutive month of increases. The data matched economist expectations. Household purchasing makes up 70% of the entire US economy so when spending is high the economy as a whole benefits. Shoppers have been taking advantage of the end of year and Christmas sales with cars, furniture and other durable goods also seeing increased sales.
“Jobs are growing, confidence is growing, households and asset values are climbing. There appears to be some sort of gathering momentum in the economy,” said a director of financial economics.
Elsewhere the IMF boosted demand for riskier assets such as the Australian Dollar and Euro. The IMF raised its forecasts for the US economy saying that it will expand at a faster pace in 2014. A recent budget deal reached by the US Congress has gone some way to dismiss some concerns over a repeat of the debt ceiling debacle which occurred earlier in the year.
The ‘Greenback’ fell against its Canadian relation after a GDP report showed that the Canadian economy expanded more than expected. The Dollar also fell against the Pound after Sterling found support from comments made by a Bank of England policy maker. The Central Bank’s Deputy Governor Andrew Bailey said that the BoE may take action to curb the UK housing market in order to prevent prices from rising too quickly.
US Dollar (USD) Current Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6122
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7302
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0600
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.6331
The Euro/ US Dollar Exchange Rate is currently in the region of: 1.3692
(Correct as of 14:50 pm GMT)
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