It was a positive day in terms of US data on Tuesday as retail sales slightly beat expectations. This figure will be a good boost in the eyes of investors in favour of a short term interest rate hike. Also released on Tuesday were import prices. These showed a significant increase, which indicated a potential increase in inflation.
We are in for a busy day today. Firstly, we have producer inflation data, for which we expect a small increase on the previous month’s figures. Following this, we also have industrial production figures, which are expected to post a contraction for the third time in three months, demonstrating volatility in the sector.
The big news, however, will be in the evening, with the US Federal Reserve interest rate decision and press conference that follows. Speculation back in May suggested that the Federal Reserve could raise rates, but this was dampened by the recent non-farm employment change data, which gave members doubt if raising rates would be ideal at this moment. Any indications of central bank policy will be scrutinised by investors.
If you are looking to buy or sell US dollars, we suggest contacting your trader now for live rates, news and currency purchasing strategies.