The euro slumped on Thursday following the European Central Bank’s (ECB) latest interest rate decision.
This upside in the ‘greenback’ was also underpinned by expectations for more aggressive interest rate hikes from the Federal Reserve and fears of a looming global recession.
However, some of the US dollar’s shine began to wear off in the latter half of the week, with a revival in market risk appetite and confirmation the US slipped into a technical recession in the second quarter resulting in USD exchange rates falling sharply on Thursday.
The end of the week then saw the US dollar rebound again as a souring market mood and a stronger-than-expected core PCE price index underpinned demand for the currency.
Turning to this week, the main focus for USD investors is likely to be the publication of the latest US non farm payroll release. Another robust expansion of the US labour force could reinforce Fed rate hike expectations and lift the US dollar.
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)