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Weekly roundup: US dollar spirals lower against major currencies

currency-newsWeekly roundup: US dollar spirals lower against major currencies
Last week President Trump asserted that the US dollar is currently overvalued, and that the strength of the domestic currency is making it much harder for the US to be competitive.

His additional remarks about preferring a low interest rate policy saw the US dollar spiral lower against the other major currencies.

Growing tensions between the US and North Korea also reduced the odds of the Federal Reserve increasing interest rates as rapidly as previously hoped, contributing to the US dollar’s losses.

Over the weekend North Korea put on a military parade on the streets of Pyongyang, displaying a range of long-distance missiles. This show of strength from the nation, coupled with the assertion of Vice-Foreign Minister Han Song-ryol that there are many missile tests ahead, weighed on Fed rate hike expectations and (subsequently) demand for the US dollar.

Over the course of this week the main US stats to focus on include today’s housing figures and industrial/manufacturing production numbers, and Friday’s manufacturing and services PMIs from Markit.

As strong domestic data could help the Fed overcome concerns about rising geopolitical tensions and continue its run of rate hikes, positive results from this week’s releases would be US dollar supportive.
Philip McHugh

Philip McHugh

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)

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