020 7898 0500Further strength from the US dollar was seen on Friday, with slightly better-than-expected preliminary growth results. The figure was still in the negative, attributed to a harsh winter along with low oil and energy prices. This mirrored data in the first quarter of 2014, which also showed a negative figure. This release echoed previous US Federal Reserve members’ expectations of a slow first quarter.
As this will be the first full week of a new month, we can expect May manufacturing and non-manufacturing purchase managers indices, with both expected to show moderate growth.
The spotlight this week will be on Friday’s non-farm employment change, which is expected to show a slight increase on the month previous. In the lead up to these result, we can expect both the ADP non-farm employment change and the weekly unemployment claims, which will be regarded as possible indicators for the main release on Friday.
Talk of an Interest rate rise could pick up again if we see yet another positive week for the US dollar, as some members of the US Federal Reserve still expect June to be a good time to start increasing US interest rates.
