A Small Step Back for the US Dollar

DollarThe US dollar has been on an extremely strong run of late which has seen many investors real in some very big profits on their investments. Recently the US Dollar has experienced highs that it has not seen in over 11 years. But that rising trend came to a halt for a few days due to an unexpected drop in US retail sales. Experts expected that trend to slightly continue based on the fact that no new economic news was forthcoming.

The dollar retreated against both the Japanese Yen and Euro after experiencing 12 year highs of 121.34 and $1.0613 against them respectively. Part of this was due to the Eurozone’s 1 trillion euro bond sale going into effect. Investors are eagerly awaiting the results of several US Federal Reserve meetings which will take place in March to see how they will invest next. Most investors expect a mid-year interest rate hike to come into effect.

In the meantime, other countries are about to release their own economic data. Canada was one country expected to announce a good economic report, but not as good as their 35 thousand job gain in January. Although the Canadian Dollar strengthened against the US Dollar ever so slightly, this trend was not expected to continue much longer.

 

John Miller
Follow us

John Miller

John has worked in investment banking for 10 years and is the main author at 7 Binary Options. He holds a Master's degree in Economics.
John Miller
Follow us