Currency Note US Dollar

Positive data supports the US Dollar

By Ricky Bean October 23rd, 2014

The US dollar had a largely positive day yesterday, thanks to higher-than-expected inflation figures from the country. After decreasing in August, the Consumer Price Index (CPI) measure of cost of living unexpectedly rose 0.1%. As a result, the dollar climbed against the majority of its most-traded partners.

Today again sees just the one major release scheduled, this time from the labour market. The unemployment claims figure will be released this afternoon, so investors will be looking for more encouragement for the US economy, especially given the recent signs of a global slowdown. Some support could be found in the less influential manufacturing Purchasing Managers’ Index (PMI), but the labour market’s crucial link to economic performance and subsequent interest rate decisions will likely make it the most important event of the day.