020 7898 0500Against sterling, the US dollar continued to be in the ascendancy. However, a mixed bag of US economic data below expectations, combined with less dovish comments from European Central Bank President Draghi, forced the continued decline against the euro. This has been a recurring feature in recent months during periods of uncertainty, where investors have been buying the euro in order to pare bets against the single currency.
Traders will have been watching Federal Reserve Chair Yellen’s speech at 21:00 on Thursday closely. Friday will focus on the Gross Domestic Product (GDP) Price Index, and, more importantly, the annualized second quarter GDP number, which is expected to come in at 3.7%, in line with the previous figure. This key data to be released today could see the US dollar strengthen against a struggling sterling, pushing its UK counterpart to new lows.
