Friday saw sterling weaken against the US dollar as the latter benefitted from better-than-expected Nonfarm Payrolls data. This was despite a narrowing in the UK’s trade deficit, with sterling falling to fresh lows against the US dollar on Friday, due to increasing trepidation over the UK’s impending EU referendum. Risk aversion has continued to bolster safe-haven currencies such as the US dollar as fears about an economic growth slowdown in China, the world’s second largest economy, remain a focus.
The week ahead brings with it notable data releases; starting with the Labour Market Conditions Index today. Tuesday brings JOLTS Job Openings figures, while Wednesday sees Crude Oil Inventories data, news from the Federal Reserve’s Beige Book (one of the documents which helps to inform central bank interest rate decisions), and the Federal Budget Balance. We expect more labour market data on Thursday, in the form of weekly unemployment claims figures.
Friday is also busy on the data front – highlights include retail sales and consumer sentiment figures, as well as the Producer Price Index (PPI) for December.
There is a lot of data from the US economy due this week, so if you are looking to buy or sell US dollars, we suggest contacting your trader today to see how this affects you and to plan an appropriate currency strategy.