Monday was a very positive day for the US dollar gaining against sterling and the euro. Key to this strength were various figures released throughout the day: the ISM Manufacturing Purchase Managers’ Index (PMI) showing growth in the sector, while there was an increase in construction spending; personal spending figures were just short of expected, and personal income figures rose. This implies that the public are currently holding back on their spending.
We expect minimal data releases today – mainly factory orders which are not expected to show any growth. This will follow a speech by US Federal Reserve member Brainard – thought to be focussing on whether there will be an interest rate rise in the next Federal Reserve meeting this month.