Dollar Back on the Rise in Forex Markets as Pound Surges

Jacob Friedman

The US dollar managed to see some much-needed gains in the forex markets following a problematic few weeks as trading took place on Wednesday.

A statement to the US Congress by the Trade Representative, Robert Lighthizer, indicated that nobody could yet be certain how the talks between the US and China aimed at resolving the ongoing trade deadlock would pan out.

As a result of the increased risk, this statement appeared to pose, the US dollar index – which tracks the greenback in relation to six other large global currencies – was up to 96.1.

The British pound also managed to move ahead in global trading too. This came after Tuesday’s decision by Prime Minister Theresa May to give parliament a chance to vote on either leaving the EU without a deal or pushing the timeframe back in the event that her negotiations don’t succeed.

In the GBP/USD pair, the pound was up to $1.3313.

With the foreign exchange trading week about to come to a close, it’s worth looking at what’s on the agenda for the next couple of days and into early next week.

Today (Thursday), the harmonised index of consumer prices for February will be released at 1pm GMT. Year on year, these are expected to remain at 1.7%.

Continuing jobless claims for the week of February 15th are due out of the US at 1.30pm GMT. These are expected to show a shift from 1,725,000 to 1,733,000.

Initial US jobless claims for the week of February 23rd are due to show a change from 216,000 to 220,000.

Preliminary American gross domestic product data for the fourth quarter of last year is expected at 1.30pm GMT too. This is expected to show a shift from 3.4% to 2.3%.

At 4pm GMT, the Federal Reserve Bank of Kansas City will give the results of its quarterly survey of manufacturers covering the month of February.

Over in Japan, at 11.30pm GMT, the Tokyo Consumer Price Index for February will be released by the Statistics Bureau. Year on year, this is expected to show a change from 1.1% to 1%.

Into tomorrow, there’ll be a significant speech from the Chair of the US Federal Reserve central banking system Jerome Powell at 1.15am GMT.

Japanese consumer confidence figures for February will be out at 5am GMT. These are expected to shift from 41.9 to 41.6.

A series of key European figures will be out later in the morning. Italian unemployment figures for the month of January will be out at 9am GMT and are forecast to show a change from 10.3% to 10.4%.

German unemployment change information will be out 8.55am GMT and is expected to show a change from -2,000 to -5,000.

Preliminary European consumer price index information for February will be out at 10am GMT. Year on year, this was last recorded at 1.4%.

US retail sales data, excluding cars, for the month on January is expected out at 1.30pm GMT. Month on month, this was last recorded at -1.8%.

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Jacob Friedman
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