The dollar is strong across the board this morning, due to better-than-expected GDP data last week. Markets are also looking ahead to the Federal Reserve interest rate decision on Wednesday.
GDP data for the second quarter of 2019 was released on Friday, showing a 2.1% annual growth. This figure was better than the expected 1.8%, but worse than the previous quarter, which came in at 3.1%. This leaves a mixed picture with regards to the US economy, but should mean the Federal Reserve will go ahead with a rate cut on Wednesday.
It’s widely expected that the Fed will action a 25 basis point cut to interest rates on Wednesday. If the announcement is more dovish than expected, this could reverse the dollar’s gains. The markets will also be looking to Fed Chair, Jerome Powell for any hints of future rate cuts.
US-China trade talks will resume in Shanghai tomorrow, with low expectations for progress.
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