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Positive Macroeconomic Data Helps US Dollar End Week Strong

October 6, 2018 at 14:09 by Vladimir Vyun

One dollar note with an American eagleThe US dollar ended the week as one of the strongest currencies on the Forex market, though the Great Britain pound outperformed the greenback. The Canadian dollar was also strong, while other commodity currencies were weak.

The US currency was firm thanks for the most part to solid domestic macroeconomic data and rising Treasury yields. Mixed nonfarm payrolls hurt the greenback to some degree by the end of the week, but the currency remained strong overall. The US dollar will likely get additional support from increasing bets on an interest rate hike from the Federal Reserve next year.

The sterling got boost from renewed hopes for a trade deal between the United Kingdom and the European Union. The Canadian dollar rallied at the start of the week on the announcement of a trilateral deal between Canada, the United States, and Mexico but the rally lacked follow-through. The euro avoided a wide-spread sell-off after Italy tweaked its budget plans to avoid a confrontation with the EU, but it is still not clear whether it will be enough to placate the European Union.

EUR/USD dropped from 1.1616 to 1.1522, touching the weekly low of 1.1463. GBP/USD opened at 1.3036, fell to the low of 1.2922 during the week, but rebounded to close at 1.3117. USD/CAD gained from 1.2846 to 1.2934, bouncing from the weekly low of 1.2782.

If you have any questions, comments, or opinions regarding the US Dollar, feel free to post them using the commentary form below.

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