The pound stabilised on Tuesday in the wake of some hawkish comments from a Bank of England (BoE) policymaker.
These losses were compounded by a risk-on mood which prevailed through the first half of the week.
The ‘greenback’ then began to reverse some of these losses in the middle of the week as market sentiment started to sour.
However the publication of the latest US PMI figures then saw the US dollar close the week on a sour note after July’s preliminary releases reported a sizable slump in the service sector.
Centre stage this week will be the Fed as it concludes its latest policy meeting on Wednesday. This could see the US dollar underpinned by a 75bps rate hike and some hawkish forward guidance.
Also set to influence USD exchange rates will be the latest US GDP estimate. Thursday’s figures could buoy the ‘greenback’ If growth rebounded in the second quarter as forecast.
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)