How far can the dollar go?

For the majority of trading today we have seen the dollar regain some control as US lawmakers have come closer to agreeing a debt deal. The dollar rally has pushed the EUR/USD rate back below 1.35 despite solid eurozone figures earlier today. The pound, however, has shown what it’s made of, and although a stronger dollar prevented a higher GBP/USD rate for the majority of the session, sterling seems to be making a decent comeback. Whether this can continue once the US government agreement has been announced is a different story, but for now, sterling has shown that it isn’t going down without a fight.

Sasha Nugent

Currency Analyst

Caxton FX