A feeling of negativity surrounded the US dollar on Tuesday, thanks to a poor factory orders release, which showed a negative figure for the first time in three months. Dovish views from US Federal Reserve member Brainard did not offer relief for the US dollar, as she confirmed her expectation that the US economy to slow down significantly more than thought in the first half of the year. She said that there would be a period of ‘watchful waiting’ before the Federal Reserve considers it time to raise interest rates. Her words resulted in the dollar then weakening against its peers, moving back above the 1.53 level against sterling and 1.11 level against the Euro.
Today we see the first indication release of the Non-farm Employment Change, which is due on Friday – with the expectation of growth in the sector. The final services Purchase Managers’ Index (PMI) is also released, and is expected to show growth – along with the ISM non-manufacturing PMI, also forecast to continue the growth of the last five years.