020 7898 0500Yesterday was the first full trading day of the new year and it didn’t disappoint, with the US dollar (USD) creeping up to the highest point in over 10 years against the euro (EUR), a two month high against sterling (pound, GBP) and a 14 year high on a trade weighted average basis. Whilst manufacturing data in the UK was very strong, the equivalent manufacturing Purchasing Managers Index (PMI) data in the US hit a two year high.
Later this week, we have the influential release of non-farm payrolls, representing US employment data, which are expected to be strong. Likewise, average earnings are forecast to show a solid increase. With the possibility of further rate hikes in 2017 the US Federal Reserve’s minutes will be of keen interest to investors. Further to this, 20th January represents the presidential inauguration, so there could be some mention of Donald Trump’s expansionary fiscal policies and the potential influence this may have on monetary policy.
For more on currencies and currency risk management strategies, please get in touch with your Smart Currency Business trader on 020 7898 0500 or your Private Client trader on 020 7898 0541.
