Currency Note US Dollar

Lots of US data this week, how will the US dollar react

By Callum Holmes February 23rd, 2015

After a quiet few weeks for the US dollar, we could see this week being more turbulent. Friday saw the release of positive manufacturing Purchasing Managers’ Index (PMI) figure, which was in the minority for data to come out from the US last week. However, the uncertainty due to a Greece-EU announcement regarding the Greek bailout extension strengthened the US dollar against both sterling and euro.

Monday will seem to be the ‘quietest’ day in terms of data releases, with the release of existing home sales data. With consumer confidence out on Tuesday, eyes will be on what follows, with US Federal Reserve Chair Yellen due to testify on the semi-annual Monetary Policy Report before the Senate bank committee. This is to touch upon what is effecting the US and what possible thresholds the central bank would like to see before a possible rate hike. This does carry on until Wednesday, along with the release of new home sales figures.

Consumer inflation is out on Thursday, with the spotlight on whether the core figure will have been affected by the downturn in oil prices, and whether it would potentially turn negative. Along with this we see data on weekly unemployment claims, which registered a positive figure last week, and core durable goods orders which is expected to show a growth in production. A key release to note is on Friday, when US growth data for the last quarter of 2014 is released – this is expected to show continued growth for the largest economy in the world.