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.