The US Dollar is set for a weekly low against all of its most traded peers, with Sterling hitting a seven-week high as investors avoid the ‘Greenback’ whilst they wait for signs from the Federal Reserve over when the US Central Bank will announce when it will begin tapering its stimulus measures.
The Pound is trading in the region of 1.5504 against the US Dollar
The Dollar’s decline was caused after a number of senior Federal Reserve officials said in interviews earlier in the week that they are not ruling out making a decision to taper stimulus measures such as monthly asset purchases at the banks upcoming September policy meeting. If data releases come in weaker than forecast they expect the decision to be pushed back until December.
“Better-than-expected data in the Eurozone and the UK has been adding to the tailwinds for the Euro and Pound versus the Dollar, We could be close to Dollar weakness bottoming out with the key trigger being more positive US data. The second half of the year is likely to be much better than the first,” said Valentin Marinov, head of European Group of 10 strategies at Citigroup Inc.
The US currency was also weighed upon after China released positive data in the morning which dampened the demand for the safe haven Dollar.
Chinese industrial production rose 9.7% from the previous year, after expanding by 8.9% in June. Retail sales jumped by 13.2% whilst fixed asset investment increased by 20.1%. The positive Chinese data mixed with the brighter outlook for Europe, allowing higher yielding and riskier assets to benefit.
Current US Dollar (USD) Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6444
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7484
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.1090
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 96.3214
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0345
(Correct as of 15:00 pm GMT)
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