Home Daily Commentaries Robust US Economy to uphold continued US Dollar strength

Robust US Economy to uphold continued US Dollar strength

Daily Currency Update

Traders anticipate that the present strengthening of the U.S. dollar will persist due to the improved state of the US economy and the potential challenges to the ongoing narrative of decreasing inflation and a 'soft landing' for the US economy.

Historically, the US dollar has tended to experience upward movement in the month of August more frequently than not. This optimistic seasonal pattern appears likely to occur again this year.

Investors are now awaiting the speech of the Federal Reserve chair during the Jackson Hole Symposium this week, hoping for insights into the future direction of monetary policy.

Key Movers

In the UK, the most recent statistics, encompassing GDP and wage data, have surpassed expectations. This has strengthened the notion that the Bank of England will continue to pursue its strategy of increasing interest rates.

Expected Ranges

  • GBP/USD: 1.2665 - 1.2765 ▼
  • GBP/EUR: 1.1715 - 1.1795 ▲
  • EUR/USD: 1.0765 - 1.0845 ▼