Published: 15 Nov at 5 PM Tags: Euro, Dollar, Pound Sterling, America, Eurozone, USA,
During North American trading the US Dollar declined against the majority of its higher risk rivals as data supported the case for the Federal Reserve maintaining an accommodative fiscal policy for the foreseeable future.
In a development which is likely to please Federal Reserve Chairman candidate Janet Yell, a gauge of US industrial production unexpectedly declined by 0.1 per cent rather than gaining 0.2 per cent as forecast.
Although manufacturing production increased by 0.3 per cent in October, slightly more than the 0.2 per cent increase expected, the US empire manufacturing index slipped by 2.21 and the capacity utilisation measure slipped from 78.3 per cent to 78.1 per cent.
All in all, a set of less-than-impressive results for the worldâ€™s largest economy.
Yellen has stressed that the US needs to be supported with quantitative easing until the economic recovery becomes more broad-based and stable. While she has also highlighted the risks of accommodative easing and has a considerable amount of detractors, any data which highlights persistent weaknesses in the US are likely to make her position stronger.
Industry expert Jonathon Lewis said this of the US Dollarâ€™s movement; â€˜The currency market appears to be saying, â€˜We get the message from Yellen, the Fedâ€™s not going to taper. Monetary conditions are going to be easy for a very long period, and thatâ€™s particularly positive for currencies geared to growth and commodity cycle.â€™
The US Dollar is currently trading against the Pound in the region of 0.6213 and trading against the Euro in the region of 0.7421.
Next week the main causes of US Dollar movement are likely to be US inflation data, the nationâ€™s existing home sales report, US initial jobless claims and the Philadelphia Fed Business outlook index.
As of Friday, 15th November 2013, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.1946, GBP USD exchange rate was 1.6122,