020 7898 0500US data was thin on the ground on Thursday but thankfully all three major pieces of data came out positive and hint at growing economic strength in the US. Producer Price Index (PPI) figures reached an annual high at 0.5% and this increase was also reflected in Core PPI figures of 0.4%. Unemployment claims contracted, showing that monetary policy in the US could lean towards a rate rise once again.
Despite this positive data, however, we did not see the US dollar gains that would usually materialise. Due to the UK’s decision to hold interest rates despite much expectation to the contrary, we saw sterling gain against the US dollar in the afternoon. It still seems that the UK is the focus of much investor attention particularly since much of the monetary policy in the UK is still to be decided.
On Friday, US Consumer Price Index (CPI) data is forecast to increase and Core Retail Sales are due to remain steady for the time being. With the UK’s interest rate decision out of the way, Friday presents the perfect opportunity for the US dollar to make the gains it should have made otherwise on Thursday.
If you are looking to buy or sell US dollars, we suggest contacting your trader now for live rates, news and currency purchasing strategies.
