The US dollar fell to two-week lows against its major rivals yesterday after concerns over the US economy’s resilience sapped USD demand.
Investors were not impressed by the lacklustre nature of November’s jobs report, even though the unemployment rate remains at a historically tight level.
With Federal Reserve policymakers already showing signs of reticence this underwhelming data paves the way for interest rates to remain on hold for much of 2019, to the disappointment of markets.
Even with trade tensions between the US and China threatening to flare up once again the US dollar struggled to find much support ahead of the weekend.
Further weakness could be in store for USD exchange rates if November’s consumer price index eases as forecast.
Softening inflationary pressure would give the Fed further incentive to leave monetary policy unchanged next year, even though the CPI is not the central bank’s preferred measure of inflation.
As forecasts also point towards a weaker month of advance retail sales growth the mood towards the US dollar could sour further.
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)