US Dollar, UK Pound & Euro: Exchange Rate Weekly Outlook and USD GBP EUR Conversion

September 28, 2014 - Written by Ben Hughes

STORY LINK US Dollar, UK Pound & Euro: Exchange Rate Weekly Outlook and USD GBP EUR Conversion

Currency News UK: Latest exchange rates outlook for us dollar, pound sterling and euro and their conversion rate levels.

The US Dollar exchange rate (USD) had another positive run in the week ending September 26 as economic data showed that the world’s largest economy is continuing to gather strength and as expectations for a rise in the nations interest rate bolstered demand for the currency.

The markets widely shrugged off jitters caused by the stepping up of the USA’s military involvement in Iraq and Syria as the US air force launched airstrikes against the forces of the Jihadists of the Islamic State.

At the start of the week, the ‘Greenback’ saw little movement as a report showed that the number of Existing Home Sales in the US in August eased from July’s revised figure of 5.14 million to 5.05 million.

Sterling meanwhile had a quiet start to the week due a lack of market moving economic data releases. The currency did however continue to receive support from the preceding week’s Scottish referendum victory for the pro-Union better together campaign.

On Tuesday, the US Dollar eased slightly against its major peers after the market digested Monday’s disappointing home sales data. The report spurred investors to embark on a bout of profit taking. The publication of Markets latest Manufacturing PMI report offered little support as it remained unchanged from the previous month.

Midweek, the US Dollar softened against most of its major peers as investors continued to lock in gains and sale the currency for profit. Later in Wednesday’s session, the ‘Greenback’ pushed higher following the release of far stronger than expected New Home Sales data. According to the figures the number of new homes sold in the USA surged by 18% in August, a figure which was far stronger than the revised 1.9% increase expected by economists.

On Thursday, the US Dollar advanced against most of its major peers after the Federal Reserve warned the markets that interest rate hikes could occur sooner than initially expected. Another solid US jobs report also increased support for the ‘Greenback’.

The data published by The U.S. Labor Department reported earlier that the number of individuals filing for initial jobless benefits in the week ending Sept. 20 rose by 12,000 to 293,000, up from the previous week's revised 281,000. Analysts had been expecting the number of jobless claims to rise by 19,000 to 300,000 last week, and the better-than-expected number drew applause for the greenback.

As the week drew to a close the US Dollar continued to make gains on market forecasts that the latest US GDP Growth data came in strongly.

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