The US dollar closed out last week with a mixed Friday, with no drastic changes in its relative strength. An unexpected fall in consumer spending suggested that households were struggling as wages aren’t increasing as fast, but this was counteracted by a rise in the Purchasing Managers’ Index (PMI) from Chicago. Both this and the consumer sentiment from the University of Michigan were ahead of expectations, giving the dollar some strength and gains against a selection of partners, including the Euro.
This week starts quietly with US markets closed in observation of Labour Day. Tuesday starts activity with the manufacturing PMI from the Institute of Supply Management (ISM) and then from Thursday we see the release of a whole raft of data including key and influential employment data. Labour data dominates with the independent non-farm employment change starting things as the regular precursor to the official figure. Following this will be unemployment claims figures, supported by trade balance data. The ISM then releases its non-manufacturing PMI variation, ahead of an equally busy Friday. On this day, labour figures are again key, with both the official non-farm employment change and the unemployment rate due. With this wealth of data, investors will be keen to see further encouragement for possible interest rate rises.