The USD is continuing to recover recent lost momentum and racing ahead against its trading partners following the GDP report coming in above expectations and providing further confidence in the US economy. When you bear in mind that concerns over global growth remain elevated, the divergence in economic sentiment between the US and everywhere else is striking, and it is continually clear that the United Sates is leading the global economy as it has been since late last year.
The US economy continues to perform on a consistent basis and confidence is continuing to improve that its economic recovery is sustainable. The US economy is more than ready for an interest rate rise, and while there are understandable concerns over the recent turmoil in the financial markets, the Federal Reserve demonstrating that it is confident enough in the US economy to carry out its repeated pledge to being raising interest rates in 2015 would provide confidence in the global economy with a world of good, and offer direction for investor sentiment when it comes to the global markets.
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