You've landed on our UK website.
Click here to visit our USA website.

If you are having difficulty locating the information you require, we're here to help. Just get in touch and we will do our best to assist you.

Weekly Roundup: US dollar strengthens as market sentiment sours

currency-newsWeekly Roundup: US dollar strengthens as market sentiment sours
At the start of last week’s trade, the US dollar suffered some profit-taking after the US dollar index hit a 20-year high. However, a bearish market mood helped the safe-haven currency bounce back.

As the week went on, the market mood began to waver, causing some turbulence in the ‘Greenback’, although Federal Reserve rate hike bets continued to underpin USD exchange rates.

The latest US CPI caused some more volatility. The US dollar spiked after inflation exceeded forecasts but then slipped as short-term traders sought to cash in on the sudden rise.

Risk sentiment soured later in the week, helping the US currency rise higher. Fears of an escalation in the Russia-Ukraine conflict and worries about the global economy triggered a flight to safety.

Finally, a worse-than-forecast slump in US consumer confidence dented the dollar at the end of the week, trimming its gains, although USD still remained strong overall.

Risk appetite has continued to shift this week, causing USD to waver in the absence of any notable economic data.

Tuesday’s retail sales data could see USD climb even higher. Markets expect 0.9% growth in sales in April, which would demonstrate the ongoing strength in the US economy and potentially boost rate rise bets.

Aside from that, Fed speeches and risk appetite could drive USD movement.
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)

Check our exchange rate

Thanks, we'll be in touch.

Check your inbox - one of our currency experts will be in touch to complete your quote.

If you want see our online exchange rates straight away, simply register online & log in.