Economic Data Gives USD a Boost
Since reaching record-highs against the British Pound and Euro in April, the USD has pulled back slightly, due in part to the perception that the US economy is back in track. Last quarters round of GDP and housing data revealed that by some measures, the US economy was expanding at the slowest pace in years. However, that notion was contradicted by last weeks release of employment, retail, and manufacturing data, all of which exceeded analysts expectations. As a result, some economists have reversed their positions on the near-term outlook for US monetary policy, by switching their predictions from rate cut to rate hike. The Tapei Times reports:
Against a backdrop of stubborn inflation and tight labor markets, our analysis going forward will be more focused on the timing of rate hikes, not cuts.
Read More: Expectations of healthy growth boost US currency