The US dollar had a more subdued start to this week, as significant economic data was hard to come by. Pending home sales were slightly behind estimates to take some of the strength out of the dollar. A weakening euro then saw the dollar reach its strongest level against the multi-nation currency in two years, although these gains were given back as both the Chicago Purchasing Managers’ Index (PMI) and consumer sentiment figures missed their expectations.
The uneventful pattern continued midweek, with the US dollar trading within a narrow range. The view that the US central bank had a more positive policy than its European counterpart helped push the dollar ahead early on, but again data was disappointing enough to bring it back down. The independent non-farm employment change figure was marginally higher, but a fall in the manufacturing PMI caused further weakness. Yesterday was a disappointing day on the whole, as the currency fell against the majority of its peers, but managed to gain a little against sterling. Labour data was actually better than expected, but factory orders missed their target.
Today maintains activity levels for the dollar, with a raft of data due simultaneously. The ever important official non-farm employment change is due, alongside the trade balance and overall unemployment rate, giving strong opportunity for market action. Finally, to round off the week is the non-manufacturing PMI, as the dollar looks to finish the dollar with some positivity.