The US dollar had a largely positive day to start trading in 2015, enjoying strong gains against the majority of its partners. This came as manufacturing figures from the country continued the positive sentiment from 2014, with speculation over interest rate rises maintaining its pressure on the markets. Despite the fact that the Purchasing Managers Index (PMI) from the sector was lower than both last month and its predicted figure, the US dollar soared to its best levels in 16 months against sterling and the best rates for four-and-a-half years against the euro.
This week is a slow start for US data, with the first main piece not due until tomorrow. This will be in the shape of the non-manufacturing PMI, which could be supported by data on factory orders. Wednesday starts the usual start-of-month labour data, with the independent non-farm employment change. The evening then brings the latest meeting minutes from the Federal Reserve, with investors again keen to see any clues on interest rate increases and their timing.
Thursday remains focussed on the labour sector for the unemployment claims, before Friday sees the release of two ever-important figures. These will be the official non-farm employment change figure, which often gives was to activity in the markets; and the overall unemployment rate. With these key data releases, the markets will be watching closely to see if the dollar can continue its ascent, given the labour market’s key ties to interest rate rises.
Please call your trader to see if the US dollar is maintaining its strong start to 2015.