020 7898 0500It was a good day for the US economy yesterday as the dollar strengthened against a basket of currencies and economic data was higher than expected. Rumours that Fed Chair Yellen will be replaced by the more hawkish Warsh gave the greenback an early boost which was further strengthened following the release of US manufacturing figures.
The Institute for Supply Management’s manufacturing activity index leapt to 60.8 in September from August’s 58.8. This was the fastest growth posted by the sector for 13 years and gives some real indications that the US economy ended the last quarter in a good position. All of this makes the rest of the week’s US releases hugely anticipated.
Tomorrow, the employment change data is released, followed by non-manufacturing PMI. Thursday sees the balance of trade report, but focus will be trained on Friday’s non-farm payrolls. They are forecast to edge higher by 98,000 compared to the average growth of 185,000 over the last three months.
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