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Weekly Roundup: US dollar suffers sell-off amid economic anxiety

currency-newsWeekly Roundup: US dollar suffers sell-off amid economic anxiety
The US dollar wavered early in the week amid a shifting market mood, although Federal Reserve rate hike bets prevented any significant losses.

Market sentiment then improved through to Tuesday, which weighed heavily on the safe-haven ‘Greenback’.

Strong US retail sales and industrial production data failed to boost USD, instead adding to the upbeat market mood.

USD enjoyed brief tailwinds after a hawkish speech from Fed Chair Jerome Powell.

However, some troubling earnings reports from US retail giants Target and Walmart spooked US markets. A stock-market sell-off spread to US Treasury bonds and dragged USD down, despite global risk aversion.

Investors bought the dip on Friday, giving the ‘Greenback’ a chance to recoup a modest portion of its losses.

The US dollar then extended its losses on Monday as risk-on market mood sapped USD demand.

Later this week, the Federal Open Market Committee (FOMC) meeting minutes are due out. If policymakers sound even more hawkish than they’ve sounded previously, USD could climb.

The core PCE price index – the Fed’s preferred measure of inflation – is then forecast to rise on Friday, which may further boost rate rise bets.
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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