020 7898 0500It was a quiet Monday for the US dollar, as it held its own against sterling but continued to weaken against the euro.
In the US we had the release of existing Home Sales data which increased slightly on the previous month, and Federal Reserve member Fischer explained that a rate lift off is probably justified before the end of 2015; it was clear, however, that it would only take place if the Federal Reserve is reasonably confident on inflation figures. With the Oil price changes uncertain the inflation rate may take time to move closer to the targeted level.
Today sees the release of consumer based inflation, and this is expected to be the first positive consumer inflation figure for five months. This is released after Federal Reserve member Williams speaks, and we expect his talk to focus on interest rate decisions. The Manufacturing Purchase Manager’s Index will also be released today, and this is expected to be a similar figure to last month and show the manufacturing sector is continuing to growth successfully. The day finishes off with an expected stable New Home Sales release figure.
