Another difficult week for the US dollar is just finished and we expect this week to be one of movement for the US dollar, with some notable data releases due, along with expected news about Greece and the Eurozone.
Monday sees the release of existing home sales data for the US, and this is forecast to be very positive – at the highest growth seen since October 2013. Durable goods orders data will be released on Tuesday, and this is also expected to be positive, following lows in recent months. These will be followed by the initial manufacturing Purchasing Managers’ Index (PMI) for June, which is expected to also show slight growth in the sector.
The main focus though will be on Wednesdays Final Gross Domestic Product (GDP) release, and this is expected to rise – although remain negative, As has been reported by the majority of the US Federal Reserve members, the US economy experienced a slowdown in the first half of the year but this is mainly attributed to seasonal factors and the low oil price. However, if the GDP falls less than expected, there could be some strength in the US dollar.
Thursday is also expected to be a busy day for data from America, with both weekly unemployment claims and personal spending. The US Federal Reserve are hoping for a personal spending increase, in line with the retail sales increase that we saw earlier this month; this is because both these figures are important indicators for a possible interest rate rise later this year.