020 7898 0500There was a positive end to last week for the US dollar. Inflation remained the same as the previous month, showing some stability, especially with the oil price still at very low levels, while a consumer spending indicator showed increased signs of positive spending. US Federal Reserve member Mester felt that the first quarter will underperform in the US, but feels the Federal Reserve has the tools and that the economy is ready for an interest rate increase.
It looks like it could be a quieter start to the week for the US dollar this week, with minimal data releases. Monday and Tuesday see no data releases, with the bulk of reports commencing on Wednesday. Existing home sales and crude oil inventories are expected to show slight increases on the previous month, while Thursday’s weekly unemployment claims are expected to register another high figure. The continued high figure of the weekly indicator is expected to effect the non-farm employment change at the start of May.
The Manufacturing Purchasing Managers’ Index is expected to show a small decline on last month, while still showing positive growth in the sector. Friday will finish off with core durable goods orders expecting growth. If any of these data sets deviate from expectations, we could see more movement in US dollar markets again this week.
