The US dollar had a disappointing day yesterday, seeing a decline against the majority of its partners in the absence of economic data. On a day with little data from anywhere in the world that was of major significance, the dollar weakened from its recent 11-month best against the euro as the multination currency gained back some strength of its own.
Today sees economic data activity start up again, with a number of key releases due from the US. Two significant pieces are scheduled for early afternoon – growth and labour figures. The growth figure will be the most anticipated, given its broad measure of economic health. Alongside this, the ever-important unemployment claims will be of interest to investors. Given the recent talk of interest rate rises and speculation over timescales, both of these data sets could provide encouragement for an interest rate hike if the figures prove positive.
Later in the afternoon the pending home sales could provide further opportunity to affect the strength of the dollar, on a busy day for the currency.