Wednesday was a negative day for the dollar compared to the very quiet beginning of this week. Although there were positive data releases for existing home sales data and oil inventories, which were welcome given the recent slowdown of the US economy, they weren’t enough to stop sterling bounce up over the 1.50 level.
Today, we have the weekly initial unemployment claims figure released. The spotlight will be on these figures in the lead up to the release of key non-farm employment figure due at the start of May – which is expected to show another drop in employment growth for the US, a contributing factor for the recent slowdown. Flash manufacturing and new homes sales will also be released, with the former expected to show continued growth and the latter release remaining stable.