The US dollar went from strength to strength this week following comments made by various US Federal Reserve members and strong figures leading up to today’s all important non-Farm employment change. Monday was a very busy day for data, with personal spending increasing and personal income dropping, showing that people are continuing to spend even with a slight income drop. Following this release Federal Reserve member Dudley spoke, giving hawkish statements that the US could still raise interest rates this year.
Consumer confidence on Tuesday as well as ADP non-farm employment change data that is used an indicator for today’s main release both showed positivity, with consumer confidence growing to its highest levels since September 2007. The ISM manufacturing Purchasing Managers’ Index (PMI) showed mild growth in the struggling sector, boosting sentiments surrounding the US economy.
The spotlight for this week is on today’s non-farm employment change data, where it is expected to grow 15% from the previous month. With the ADP figure showing positive signs we could see another strong showing for the US dollar; however, any discouraging surprises could spell trouble for the US currency. Average hourly earnings is also released today, with a slight drop expected, in line with the personal income figure released on Monday.