Friday was a very positive day for the US dollar, gaining over a cent against both sterling and the euro. This main driver behind this was the much better than expected Non-farm payroll figure, which was at a three month high, and the positive news that average hourly earnings in the US increased slightly.
Today we see the last day of the G7 meetings which started on Sunday. This is expected to cover the current state of the world economy, and the continued Greece and Eurozone negotiations. The main focus on this week’s data will be on Wednesday’s retail sales figures. Positive figures will show that the US economy is back on track with the public, and that they are purchasing in line with an increased average earnings. However, previous figures suggest that we will continue to see that people are holding off from buying goods in anticipation of a possible interest rate rise. Friday will see the release of producer inflation which is expected to show an increase in line with expectations and slight growth in consumer confidence.