The US dollar had a good day yesterday, thanks to positive speculation over the relative strength of the US economy. With physical data thin on the ground from stateside, investors were betting that economic reports from today onward would add to evidence in favour of tighter monetary policy in the US. With this being particularly strong compared to that of Europe and Japan, the dollar rose back to a seven year high against the yen, and nearer towards the recent two-year levels against the euro. The falling oil prices also benefited the dollar.
Today holds a number of key releases from the US, starting with the independent non-farm employment change figure. As a precursor to Friday’s official figure, this gives a good indication to an influential sector, one that is closely linked to monetary policy. Following on from this will be the non-manufacturing Purchasing Managers’ Index, before some smaller pieces of data throughout the evening. The Beige Book is due to be released, which potentially gives clues as to monetary policy, while a few members of the Federal Open Market Committee (FOMC) are due to speak, which may also provides hints as to potential changes in monetary policy plans.