The US dollar had a largely positive Monday, although larger gains early on were reversed somewhat later in the day as the oil price continues to fall. There were a few minor releases during the day, and these showed varied results. The empire state manufacturing index came out some way behind expectations, but the industrial production figure counteracted this by comfortably beating its estimate.
Today’s main data release is the building permits figure, supported by further construction data covering housing starts. The manufacturing Purchasing Managers’ Index (PMI) could also contribute to the dollar’s performance, although any further movement on the oil and interest rate question is likely to dominate proceedings.
Investors are also looking ahead to Wednesday’s Federal Reserve meeting, with speculation that there could be clearer support for interest rate rises to happen sooner rather than later. They are probably going to be disappointed but if not then we could see a rapid appreciation in the US dollar.