In recent weeks a veritable stream of positive US economic data has brightened the nation’s outlook and encouraged investors to speculate that the Federal Reserve will begin to rein in its present level of easing.
The US Dollar Exchange Rate was trading in the region of 1.3047 against the Euro as of 16:30 GMT
However, economic recovery hopes were knocked yesterday as US GDP failed to match up with initial estimates.
Not only did the US economy expand at a slightly slower pace than originally estimated (growing at an annualised rate of 2.4 per cent, rather than the 2.5 per cent growth expected) but initial jobless claims unexpectedly increased last week, while US pending home sales only increased by 0.3 per cent – significantly less than the 1.5 per cent gain predicted.
In the aftermath of the results the Dollar fell against several of its most traded peers, including the Euro and Yen.
The Yen’s advance was aided by comments relating to Japan’s Government Pension Investment Fund potentially adopting a more flexible approach when it comes to allocations.
In response to the US data currency analyst John Doyle asserted it was ‘Nothing too earth-shattering [but the GDP figure may lend] a little bit to the scope that the Fed will continue QE throughout the end of the year. Moving into next week, what we’re going to see is a shift in attention to nonfarm payrolls as a better indicator for those taking bets on the ending of QE.’
US Dollar (USD) Current Exchange Rates
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The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6574 <
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7764 <
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0385 >
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 101.2200 >
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0362 >
The Pound Sterling/ US Dollar Exchange Rate is currently in the region of: 1.5207 >
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3047 >
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9670 >
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9692 >
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.8104 >
(Correct as of 16:30 GMT)
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