US Dollar Loses Ground

4 June, 2013

Graham Harborne

The US Dollar was the main loser yesterday in the currency markets with data releases very much being the driving force behind the movements. Better than expected eurozone and UK data coupled with poor data from the states saw both the pound and euro strengthen against the dollar.

The remainder of the week is likely to have a similar trend. There are a number of very important data releases out that are likely to affect all the majors so this week more than normal it’s important to keep in touch with your account manager here at Currency Index to ensure you are up to speed with what’s occurring.

We kick things off today with UK PMI and eurozone PPI and then there is a raft of US data this afternoon. Tomorrow sees the release of eurozone GDP – will we see an improved reading and therefore euro strength? Thursday is the all important interest rate decisions by both the ECB and the BoE. A rate cut was seen last month in Europe so it’s unlikely we will see any change but it will be interesting to see if president Draghi feels there is room for more cuts. The BoE have not changed their policy for a number of months now and though a rate cut/rise is almost certainly out of the question votes for the adding of more QE have been close at recent meetings and an increase in this could well see the pound fall away dramatically.

An exciting week ahead so make sure you keep your finger on the pulse.