The US dollar had a difficult week last week and weakened further against sterling and the euro on Friday as core durable goods orders data released showed a contraction in core orders being placed, although the overall figure had grown more than expected.
It will be interesting to see if the US dollar continues to weaken against its peers this week. Growth figures to be released on Wednesday for the first quarter are expected to highlight a tough winter and be close to 1%, much less than the 2.2% for the last quarter of 2014. We also have the latest Federal Reserve meeting the same day. It is a fairly low key meeting as there is no press conference following the meeting or new economic forecasts and the expectation is that there will be no change in policy. The weekly unemployment claims for the US is due Thursday, with expectations for another high figure – which could build a negative view for the Non-farm employment figures due next week. The ISM Manufacturing Purchase Managers’ Index will be hoping for a positive sign, especially with the US fighting against the current slowdown.