020 7898 0500It has been a mixed week for the US dollar in terms of fluctuations influenced by data releases. Movement has been driven again by sterling. On Monday we saw the release of the ISM manufacturing Purchasing Managers’ Index (PMI) which posted an improvement and growth compared to last month. Construction spending released on the same day showed a continued contraction.
With no data releases on Tuesday, attention turned to Wednesday with the ADP non-farm employment change figure, which is widely used as an indication towards the main release today. This figure fell from the previous month’s to a low of five months, leading to speculation that the main release could follow suit. Positivity soon returned, however, with the ISM non-manufacturing PMI showing much better-than-expected figures, posting an 11-month high.
We can look forward to a busy day today, with Average Hourly Earnings expected to show a mild increase on the previous month, and various US Federal Reserve members due to speak throughout the day. However, the spotlight will be on the non-farm employment change data, which is expected to post growth from last month’s figures, despite the poor ADP indication earlier in the week. Any surprises could spell movement for US dollar crosses.
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