Source: ADVFN Newsdesk <>

Text copied from the source above mentioned

There have been
further concerns surrounding the US manufacturing sector, especially with a
strong dollar, but the wider economy has maintained a solid tone.  There
are further expectations that the Federal Reserve will move to raise interest
rates at the September meeting which will provide underlying dollar support. It
could still prove to be difficult to sustain dollar gains, especially if the
Fed plays down the scope for rate hikes. The dollar is still poised to
gain support from capital flows into the US from emerging markets and a forced
covering of carry trades. Overall, there should be solid underlying support for
the US currency even if overall gains are limited from current levels.
The dollar maintained a generally firm tone during the week with a further
notable advance and multi-year highs against commodity and emerging-market
currencies, but it was unable to sustain an advance against the Euro.

US existing home sales data was again stronger than expected at an
annual rate of 5.49mn for June from a revised 5.32mn previously and at the
highest levels since February 2007. Within the data, there was also a strong
reading for prices with the median reading at an all-time high. The data
overall maintained confidence in the US outlook and expectations that the Fed
would push towards tightening this quarter.

The jobless claims data was much stronger than expected with a decline
to 255,000 in the latest week from 281,000 previously and the lowest level
since 1973. Although potentially distorted by seasonal factors, there will be
confidence that the labour market is continuing to strengthen. This will also
increase pressure for the Federal Reserve to tighten policy given
evidence of further labour-market strengthening. There will be expectations of
at least a slightly more hawkish policy statement at Wednesday’s Fed meeting

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