We have seen continued strength for the US dollar this week as talk emerged of recent US economic data being supportive of the view that this year’s first quarter economic performance has been similar to last year’s poor showing. This was down to other factors such as the weather. Due to this, whispers are resurfacing regarding the timing of a US interest rate rise.
On a positive note for the US economy, core durable goods came out as expected for the first time in 9 months, with consumer confidence also showing slight growth. However, the weekly unemployment claims showed weaker than expected figures, but as this was a weekly figure this did not have too much of an impact of the US dollar. Multiple US Federal Reserve members also spoke during the week, with a June interest rate rise still being mooted as an option.
Today the focus will be on the preliminary growth data with expectation surrounding a figure in the negative. This would mirror the first-quarter data releases showing that the US economy was struggling, which seems to be a regular seasonal occurrence.