Greenback Expected to Gain
The Euro and Greenback have had mixed trading in February so far, but overall have performed strongly and the the USD is expected to gain before the end of the month.
Euro – Best Performer in February’s First Week
February started strongly, with the shared currency closing as the best performer against the USD, rising by 0.57% to end the first week of the month at $1.1473. It also performed superbly against the Japanese Yen, growing by 0.54% to close at 125.7. Against the Sterling, the Euro increased by 1.2% to end the week trading at €1.1409 per Sterling.
Greenback – Dominating the Market from February 8-15
The US Dollar dominated the market in the weeks that ended February 8, and February 15 respectively. In the previous week, the greenback was stronger versus the Sterling, with the GBPUSD closing at $1.2936, which represented a rise by 1.2% for the week. The USD also traded stronger against the Euro, rising by 1.3% to close at $1.1328. It ended the week stronger against the Japanese currency closing at 109.8 Yen to the Dollar, which represented a 0.19% rise during the week.
In the week ending February 15, the USD/JPY went up by 0.66%, closing at 110.456. The USD also went up against the Euro to end the week at 1.129, representing a 0.26% rise. The Euro meanwhile performed excellently against some top currencies including the GBP, CHF, and JPY.
Greenback Expected to Rise on the Back of Strong Data
The greenback is expected to continue performing excellently over the coming days as analysts predict strong data. The US durable goods orders for will be released on Thursday after government shutdown delayed it. Headline sales went up by 0.8% in November, and a similar figure is expected for December. Core orders are set to rise by 0.2% after previously dropping by 0.3%.
The Fed returns to the limelight as the FOMC meeting minutes will be released on Wednesday. In its meeting last month, the Fed decided to leave interest rates unchanged, with the minutes from the meeting expected to shed more light on how worried Jerome Powell and his colleagues are about the current state of the US economy. The event is expected to be bullish for the USD.
Traders are also looking forward to the Euro-zone PMIs, which will be released on Thursday. In January, France recorded a PMI of 51.2 points, barely above the 50-point. Last month, the euro-zone manufacturing PMI stood at 50.4 while the recorded services PMI of 51.2, with not much expected to change this week. The Euro and Greenback have led the pack so far this month and they will most likely continue doing that.
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