Today the American dollar finds itself trading near 2-year highs. The greenback is currently boosted by fundamentals released yesterday that showed the economic climate in the United States is good. These reports include the biggest increase in capital goods for the last eight months, as well as strong retail sales and exports data. Moreover, the dollar is also receiving attention as a safety asset, hedging the risks associated with the European markets and Brexit, as well as the trade disputes with both China and the European Union.
Today the United States will be publishing their GDP growth report for the first quarter of 2019, arguably the most important indicator regarding the States right now. If it meets the forecasts or is even better than expected, the USD has the potential to soar further. However, a disappointing report will point to a likely further softening of the Federal Reserve’s monetary policy.
Yesterday the dollar index hit a high of 98.32, but today it is slightly lower at 98.12 as the markets prepare for the GDP report. It will be released around 12:30 GMT.
