• About Us
  • Authors
  • Currency Charts
  • Live Exchange Rates
  • Contact Us

Exchange Rate Forecast

Exchange rate forecasts and foreign currency news

  • British Sterling
  • Euro
  • US Dollar
  • Australian Dollar
  • Canadian Dollar
  • Brexit News
You are here: Home / US Dollar / US Dollar finds support following GDP figures but for how long?

US Dollar finds support following GDP figures but for how long?

September 30, 2016 by Joe Wright

US Dollar finds support following GDP figures but for how long?

The US Dollar found further support yesterday following positive GDP figures as well as better than expected jobless claims. The US economy continues to go from strength to strength with building pressure on the FED to act by raising interest rates.

Janet_Yellen_official_Federal_Reserve_portraitDuring Yellen’s speech on Wednesday, she made a statement to congress that the overall mood amongst policymakers who are ‘very pleased with how the economy is performing’. Yesterday’s GDP figures will add further optimism amongst policymakers.

That being said, the upcoming US elections will occur within weeks of the FED’s next interest rate decision, and whilst the FED are independent of politics its unlikely that an interest rate rise will occur during any US election, especially this one.

With this in mind, there could be a window of opportunity for US Dollar buyers to take advantage of.

US Dollar weakness likely during US elections

Political events tend to create volatility for the currency it relates to and this year’s US elections will likely cause more volatility than normal. If the FED are gearing up for a hike it is likely to be in December or early next year. What this means is US Dollar buyers could have a window of opportunity between the US elections and a FED interest rate raise.

As yet, the US Dollar has not hit the storm but with polls suggesting Trump could have a chance at the White House we could see similar movements seen during the UK’s Referendum earlier this year.

Janet Yellen to quit if Trump takes power?

It has been suggested that Janet Yellen may resign in the event Trump takes Presidency, this follows comments from Trump about the Chairlady.

Paul Ashworth, chief U.S. economist at Capital Economics made the comments following Trump’s rant about the US economy remaining in a ‘Big, fat, ugly bubble’. It would not be the first time Trump has criticised the FED’s handling of the economy in recent months.

There remains a lot of uncertainty ahead for the US economy but in any event, whilst the US Dollar remains at a 30-year against Sterling, we could see some big movements as we approach October and into November. Similarly to the Brexit vote, we could see some major figures resign as a result of a Trump Presidency. Given that he wants to limit trade with China if elected, a Trump victory could have ramifications on the Global economy.

Filed Under: US Dollar

The information on this website is provided for information purposes only. It does not constitute advice to any person on any matter. Every reasonable effort is made to ensure that the information is accurate and complete but we assume no responsibility for and offer no warranty with regard to the same.

About Joe Wright

Joseph Wright brings a wealth of experience on the currency markets. He has worked in a number leading financial services organisations over the last seven years - working within a range of products including foreign currency exchange, equities and derivatives.

Recent Posts

  • Sterling finds support but unlikely to make any significant impact in the coming days May 9, 2018
  • US Dollar hits 5 month high against Sterling May 2, 2018
  • Sterling exchange rates at the mercy of political developments May 1, 2018
  • Pound weakens as political uncertainty once again raises its head May 1, 2018
  • Will Mario Draghi’s speech impact GBP/EUR? April 26, 2018

Live Exchange Rates

Archives




Copyright © 2021 — Currency.co.uk • All rights reserved. • Exchange Rate Forecasts • Privacy Policy •

We use cookies to ensure that we give you the best experience on our website. By using this site you agree to receiving cookies.I agreeRead Privacy Policy