US Dollar Jumps as Federal Reserve Considers Early Interest Rate Hike

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Financial Spreads: Spread Betting and CFD Trading


Forex Trading

: 25 July 2014

Manufacturing and services in the Eurozone unexpectedly rose yesterday, giving the European Central Bank some hope that their latest policy easing might just do the job.

That put a stop to the shared currency's steep nosedive we have seen in the forex markets over the last few weeks, with the EUR/USD pair ending flat around $1.3462.



Forex Trading

: 24 July 2014

Consumer confidence in the Eurozone unexpectedly dropped in July to -8.4 from -7.5 in June, reinforcing signs that the ECB still has plenty of work to do in order to spur economic growth.

Despite the fall of just 2 points for the euro against the dollar to $1.3463, the outlook for the shared currency remains under pressure as investors seem to be favouring the US dollar at the moment.



Forex Trading

: 23 July 2014

Whilst the Fed is debating the exact speed of their tightening programme, the ECB has offered unprecedented stimulus; a testament to the divergence of the two economies.

A weaker currency is of course helpful if you want to beef up exports, so the FX markets seem to think that the shared currency will continue its slump versus the dollar.

As a result, the EUR/USD pair lost 58 points to $1.3465.



Forex Trading

: 17 July 2014

With US economic data continuing to improve, we are seeing fuelled speculation that the Fed might raise interest rates sooner than markets expect.

This was the case again yesterday, sparking renewed interest for the dollar.

As a result, the EUR/USD pair lost 43 points to $1.3525, falling back to the recent low seen in mid-June.



Forex Trading

: 16 July 2014

In her testimony to the Senate, Federal Reserve Chair Janet Yellen pointed out that interest rates could rise sooner than initially estimated if the labour market keeps improving at a faster pace.

In reaction, investors rushed into the dollar and discarded the common currency, especially given that German ZEW economic sentiment had already come in weaker than forecast.

The EUR/USD pair ended 50 points lower at $1.3569.



Forex Trading

: 15 July 2014

European Central Bank President Mario Draghi warned that banks shouldn't use cheap money from the central bank to buy government bonds.

In addition, he said that the current economic outlook faces risks to the downside.

Despite this, and the fact industrial production in the Eurozone was weaker than expected, the shared currency moved 17 points higher against the dollar to $1.3619.



Forex Trading

: 14 July 2014

Amid warnings from German Chancellor Angela Merkel regarding the Eurozone's economic fragility, the shared currency ended flat versus the dollar at $1.3608.

Spread betting investors seem to have stopped to reassess the next possible direction as the minutes from the last FOMC meeting offered few clues on the timing of interest rates hikes.


By Jonathan Sudaria, 25 July 2014


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