The US dollar is certainly raising a few eyebrows this week. After 8 months of relentless selling pressure, the world’s reserve currency has quietly racked up a string of gains, which has seen 3 and 4 cent drops in the EURUSD and GBPUSD pairs over the past 3 weeks.
A combination of stronger economic data and a successful vaccine rollout under the new Biden administration has provided investors with the confidence to dip their toe back into the heavily questioned currency. Yesterday’s better-than-expected US GDP and unemployment numbers helped the currency’s cause. The EURUSD pair sank to its lowest levels since November last year, while GBPUSD traded firmly into the $1.36 handle in the morning session. Watch this space!
Today sees UK retail sales data, German business sentiment, US consumer sentiment, and an EU summit. A busy end to what’s been both an interesting and volatile week of trade.
8:12am, March 26th 2021
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