The dollar has been doing well, certainly in the positive territory, due to data on the US economy this week. The best dollar rate on the US dollar index reached a peak above 105, a high we have not seen since March. The data mostly had to do with jobs. Information on jobless claims and new data on unit labour costs came out this Thursday, causing this shift.
In the short term future, investors will likely be looking at the intentions of the Fed. Their moves in reaction to this data could be vital.
Additionally, a recent PMI report came out this Wednesday. It shows that activity in US businesses was still growing in the service sector. August especially showed an even faster pace of growth. Jobs in the services sector have also grown in number, as well as an improvement in input prices. Treasury bond yields have reacted in response, with the 10-year benchmark leaping up 4.3%. This caused a further rally in the dollar. Investors believed this could indicate that the Fed may consider one more rate hike.
Analyzing the Best Dollar Rate Trends for Key Currency Pairs
Now we can look at a few specific currency pairs. The best dollar exchange rate for the EUR/USD has reached 1.07 a few times, and analysts therefore believe it has found a support level. The fact that the pair has been moving sideways after reaching this price point supports this theory.
The GBP/USD has been dropping, reaching a low from last June, down to 1.25. So a 100 dollar conversion would to pounds would be near £80. There was a slight bump up from this point, but it still remained at a volatile stage by the end of Thursday in Asia. The cause for this is likely the strength of the USD generally, alongside indicators of the intentions of the Bank of England.
Overall, the best dollar rate has been strong against multiple currencies so far.
