The US dollar strengthened further on Tuesday as consumer confidence posted its strongest figure since August 2007. This shows confidence is high in the US even with the expectation of an interest rate rise possibly being pushed back until next year, and the knock on effect from the recent struggle in the Chinese economy. US Federal Reserve member Loretta Mester also said that the US are able to deal with an increase in rates this year – she is the second member who looks to be pushing for an increase in the short term.
The focus on this week will be on Friday’s non-farm employment change data, which is expecting to post an increase on the previous month’s. Today we will see an indicator leading up to this release, with the ADP non-farm employment change. Following this, we can look forward to Federal Reserve Chair Yellen speaking in the evening. Any indications as to a potential rate hike could spell movement in dollar markets.