USD Up, European Stocks Hit by UK Protests

The dollar traded near four-year highs against a basket of major currencies on Monday on further signs of the relative strength of the U.S. economy, while pro-democracy protests in Hong Kong hurt Asian-exposed European shares.

The dollar was broadly stronger, hitting a two-year high against the euro, a six-year peak against the yen and a 13-month high against the New Zealand dollar. Reserve Bank of New Zealand data showed the central bank intervened last month to speed its currency’s weakening.

Data on Friday showing higher U.S. growth in the second quarter fueled speculation that the Federal Reserve may raise interest rates sooner than expected, in contrast with the outlook for the European Central Bank.

A key non-farm payrolls release on Friday is expected to add to the picture of the U.S. economy steaming ahead at the end of a busy week in terms of economic data.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza