The U.S. dollar hovered at 14-month highs against a basket of major currencies early on Wednesday, underpinned by upbeat U.S. data and further supported by a sell-off in the yen and sterling.
The dollar index rose as far as 83.039, reaching levels not seen since July 2013 after data showed manufacturing activity hit a near 3-1/2-year high last month and construction spending rebounded strongly in July.
“This only reinforces our bullish USD view premised on a relative pick-up in the U.S. economy, some more front-end rate support for the USD…as rates re-price to the Fed’s own forecasts,” analysts at JPMorgan wrote in a note to clients.
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.