The pound retreated on Thursday after the Bank of England (BoE) struck a more cautious tone than expected following its latest policy meeting.
As the latest action from governments and central banks around the world failed to ease market anxiety for long USD exchange rates were able to hold onto a generally bullish footing.
With global financial markets on the back foot demand for cash and US dollars continued to grow ahead of the weekend.
However, after the Federal Reserve unveiled a fresh raft of quantitative easing measures the US dollar stumbled as market sentiment showed some signs of stabilisation.
The Senate’s inability to pass promised fiscal stimulus measures may help to boost USD exchange rates in the days ahead, though, as investor sentiment remains fragile at best.
Unless markets see signs of greater resilience within the global economy the US dollar may continue to benefit from safe-haven demand for the foreseeable future.
If the finalised fourth quarter US gross domestic product data sees any downward revision this could put a dampener on the US dollar, though.
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)