US Dollar: forecast for July 20-26
US Dollar index rose to a 1,5-month high, approaching the 98 points resistance. The currency was pushed higher by the hawkish Fed’s governor Yellen’s comments. She has clearly confirmed the Fed’s intention to raise interest rates in the year 2015 despite the global economic concerns. These days, more than 80% of the economists, surveyed by the WSJ, expect the first rate hike to come in September.
We expect the US Dollar to resume the upside if the US data doesn’t disappoint. The next week’s economic calendar is rather light with the unemployment claims dominating the scene on Thursday. You should also watch the manufacturing PMI on June.