The United States Dollar remains relatively range-bound in overnight trading, appreciating a marginal 0.27% to 96.6 on the US Dollar Index. In what has proven to be a lacklustre economic calendar, the themes of the week continued to play a part on Thursday trading with volatility in equity markets affecting market sentiment in a number of financial markets.
The economic calendar did have some release’ of note however with month on month core durable goods orders posted overnight. The result was ultimately poorer than expected however which didn’t help the Greenbacks case. Despite the setback, the USD did find some support from the new vice-chair of the Federal Reserve Richard Clarida who gave his first speech yesterday. Tellingly, he gave a fairly upbeat view of the US economy and noted that “some further gradual adjustment in the policy rate range will likely be appropriate”.
The Greenback was also well supported by volatility in equity and bond markets with both appreciating overnight. Earnings from some big tech stocks such as Twitter, Microsoft and Tesla led the S&P500 to rally. Nevertheless the overall trading environment remains volatile which saw the US Dollar well bid.
Moving into Friday the Greenback turns to advanced quarter on quarter GDP figures for direction and will keep a close eye on equity markets.