The dollar was poised for back-to-back weekly gains versus major peers before data predicted to show U.S. durable goods orders rebounded in June, indicating manufacturing is strengthening with the economy.
The Bloomberg Dollar Spot Index, which tracks the currency against 10 major counterparts, climbed to its highest in a month yesterday as the Standard & Poor’s 500 Index extended a record following a surge in sales for Facebook Inc. The yen held a decline from yesterday after a report showed Japan’s core inflation slowed from the strongest level since 1982. The pound was set for a third straight week of losses, the longest stretch in four months, before gross domestic product data due today.
“Dollar buying continues on the back of good U.S. corporate earnings,” said Yasuhiro Kaizaki, a vice president for global markets in New York at Sumitomo Mitsui Trust Bank. “Next week has GDP, FOMC and payrolls, so the market will try to figure out whether the current flow will continue watching those events,” he said, referring to gross domestic product and the Federal Open Market Committee.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.