020 7898 0500The US dollar suffered at the beginning of this week, as it attempted to recover from the poor Non-Farm Employment data from the previous Friday. A small number of Federal Reserve members did speak out in support of the dollar despite this figure, with some still indicating that June would be the month for the first rate lift off. However, this has driven mixed views from other members of the Federal Reserve, with some even wishing to push back the date until 2016.
This week’s positive releases included the Services and Non-manufacturing Purchase Managers Index (PMI), both showing continued growth in the sectors. Tuesday saw an increase in JOLTS Job openings, which showed that the jobs are there for the employment rate to pick back up next month. The current slowdown in the economy meant that there were mixed views on an interest rate rise in the Federal Reserve minutes released on Wednesday showing. There was slightly negative news when Thursday’s Unemployment claims release which showed a slight increase – but this was not big enough to weaken the US dollar.
Today, we will see import prices for the US – and this is expected to fall alongside current inflation. Federal Reserve member Lacker is speaking, and we expect there will be a continued focus on possible interest rate rises.
