The Euro is trading sharply lower today against the US dollar on the back of a surprise interest rate cut from the peoples bank of China and some positive data from the US which may see the US Federal reserve move ahead with a rate hike next month.
At 3.39pm (GMT) the US dollar was trading at 1.1405 against the US dollar down from 1.1514 in yesterdays close.
The latest durable goods numbers from the US came in at 2.0% against analysts’ expectations for a number of -0.4% while the figure ex transportation was a healthy 0.6% against a consensus of 0.4%.
Is the US dollar making a comeback?
After allowing the Euro to reach a 7 month high the US dollar has rebounded strongly along with the economy which shows its ability to withstand external shocks such as the Chinese economy with its recent currency devaluations and stock market crash..
James DeMasi, chief fixed-income strategist at Stifel Nicolaus & Co noted,
"It demonstrates the continued resiliency of the U. S. economy in the face of formidable international headwinds."
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