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Mon 15 Jul 2024 10:10GMT

US Dollar (USD) And Pound (GBP) Bullish As Domestic News Beats Forecasts

Published: 15 Aug at 5 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Canadian Dollar, USA, Canada, India, South Africa,

The US Dollar advanced on peers including the Euro, Canadian Dollar and Indian Rupee during the North American session after being boosted by the news that US jobless claims dropped to their lowest level since 2007 – fuelling speculation that the Federal Reserve will opt to taper stimulus in the near future.

The cost of living in the US also edged closer to the Fed’s target after climbing 2.0 per cent year-on-year in July.

Although the Euro had gained on the ‘Greenback’ in the aftermath of yesterday’s positive growth figures, the US Dollar was able to erase its loss after the data was published.

As market analyst Omer Esiner commented: ‘All the economic data we’ve seen today is clearly having a positive impact on the Dollar. It’s the type of data that cumulatively supports the idea of a September tapering by the Fed.’

South Africa’s Rand, and other emerging market currencies, weakened as the odds of the Fed winding down stimulus increased.

The Rand softened beyond the psychological 10 Rand per Dollar level while the Rupee hit 61.4680.

However, the Pound was able to hold its own against its US counterpart as strong retail sales figures brightened the UK’s economic outlook and supported Sterling.

Industry expert Peter Kinsella said of the Pound’s movement: ‘The Pound has been doing better. The main factors have been a decent improvement on the yield side and positive PMI and unemployment data. The economy is slightly better but that’s coming from a low base.’

The main pieces of economic news driving currency market movement tomorrow are likely to be Eurozone CPI and US housing starts/building permits and University of Michigan Confidence figures.
As of Thursday, 15th August 2013, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.1716, GBP USD exchange rate was 1.5636, GBP CAD exchange rate was 1.6113, GBP INR exchange rate was 95.9313, and GBP ZAR exchange rate was 15.607.
Patrick James About Author: (289 Posts)Patrick completed his economics degree just as the global financial crisis struck in 2008. In the intervening years Patrick has made his mark, climbing to a prominent position within a large financial services provider. As part of his role Patrick uses his expertise to advise companies of the best ways to safeguard against currency risk.

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