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By xemarketanalysis January 26, 2018 11:34 am
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    XE Market Analysis: Dollar Volatility Continues Comments

    OVERVIEW

    • Dollar all over the show has conflicting comments from US government officials.
    • UK GDP surprises at 0.5% for the final quarter of 2017.
    • ECB member says recent public noise on currency rates is proving unhelpful.  

    HIGHLIGHT

    The US Dollar continues to be extremely volatile as conflicting comments are made by the US Treasury Secretary and the US President in Davos. The Dollar has seen moves more than 2% within hours.

    US DOLLAR

    The US Dollar is stronger this afternoon after an extremely volatile few days of trade. The Dollar slipped against all currencies as Treasury Secretary Mnuchin said a weak Dollar is good for the US economy. This was short lived as President Trump said he would ultimately prefer a strong Dollar, confusing times for currency traders. Overall the Dollar will end the week significantly lower against both the Euro and Pound. 

    BRITISH POUND

    The Pound has had a good week and will end it higher against most of the major currencies. The Pound was given another boost today as UK GDP exceeded forecasts and rose by 0.5%, making the final quarter the strongest for growth in 2017.

    EURO

    The Euro held firm today as ECB Board Member, Benoit Coeure, said talks over currency exchange rates should be kept to the confines of global meetings like the G7 and the G20, and that the recent public noise is unhelpful. 

    CANADIAN DOLLAR

    The Loonie is stronger against the US Dollar today as a weaker US Dollar and Canada’s inflation rate dropped to 1.9%, helping the central bank stick to its plan of hiking interest rates.

    AUSTRALIAN DOLLAR

    The Aussie Dollar slumped after US President Trump said the Dollar will get stronger and stronger. The risk currency was therefore sold back into the safe-haven currencies. 

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