020 7898 0500The US dollar will be looking for some relief this week, after the continued weakness it suffered over the previous week. With various US Federal Reserve members speaking this week, the focus will be on how they interpret a possible interest rate rise, especially since the US economy has been struggling recently.
Wednesday will see the release of the very important Federal Reserve meeting minutes. This will be used by investors to gauge the likelihood of an interest rate rise this year. Judging by recent data releases which have been poor, a rise seems further off, which would weaken the US dollar further. Weekly unemployment figures on Thursday are expected to remain stable, while a flash manufacturing Purchasing Managers’ Index (PMI) is expected to show a slight increase.
Friday will be just as important as Wednesday, with the release of the inflation data. This has been a figure that has dropped among major world economies, due to the low price of Oil. Given poor retail sales last week, and expected low levels inflation, there may be talk of the US heading towards deflation.
