US Dollar Strengthens Against Major Peers, Strong Economic Data Supports

The US dollar is holding on to its gains and starting a new trading week on a bullish footing, buoyed by recent optimistic economic data releases from the US. At the time of writing, the US dollar index DXY is trading at around 97.59

On Friday, data released showed that homebuilding activity strengthened to the highest level in 13 years during December, even as retail sales and manufacturing activity also picked up recently. The strong economic data has reassured markets that the Fed will not be looking to cut interest rates anytime soon, which has helped strengthen the US dollar.

The US dollar has also gained against other currencies, especially against the Euro and the GBP which have been weakening on the back of disappointing economic data releases, especially economic growth. Meanwhile, the AUD has also weakened against the greenback over rising expectations for a rate cut by the RBA amid rising unemployment levels and weak consumer sentiment.