Yesterday was one to forget for the dollar as we saw it weaken against both its major currency pair. Positive data for non-manufacturing Purchasers’ Managers Index at 3.00pm saw the dollar rise steeply – but this was short lived and the currency fell off 15 minutes later! This was compounded by a poor trade deficit figure which increased to over US$50 billion – expectations had been much lower at just under US$40 billion. This increased worries over the state of the US economy and also what effect the strong US dollar was having on exports.
Today we see the release of the non-farm unemployment data, and Chairperson Yellen will speak at just gone two o’clock. With the unemployment data expected to be more encouraging than last month’s release, an encouraging speech from Yellen could see the dollar strengthen as we edge closer to the UK General Election.