Will todays US data reignite expectations of an early increase in interest rates?
By Ricky Bean August 5th, 2014
Yesterday saw no major data from stateside to impact markets, leading to an uneventful day for the US dollar. After disappointing jobs figures on Friday this was probably a welcome “day of rest” for the US dollar. It is still close to 10 month highs against a basket of other major currencies and it is unlikely to see this relative strength broken any time soon.
Today sees a slight increase in activity, with the first significant data set due from the US in for form of the non-manufacturing Purchasing Managers’ Index (PMI). This will be supported by factory orders data. Investors will again look for signs of a stronger economy to reignite hopes of higher interest rates, but less-than-impressive figures could see the dollar lose ground as it did last week.