Yesterday the US saw a speech by Federal Open Market Committee (FOMC) member Bullard, slight worsening in producer price data and an increase in crude oil inventories. The dollar remained steady against the euro and, despite more volatility, closed around the area that it opened against sterling.
Today sees a raft of high-impact data releases from the US. Building permits will be released, showing the performance of the housing market. We will also see inflation figures in the form of the Consumer Price Index (CPI) and core CPI.
We also have unemployment data, as well as manufacturing data from the Philadelphia Federal Reserve. The unemployment figures will have the attention of investors, as we will begin to see how the economy has reacted to the prospect of a Donald Trump presidency. Continuity or unexpected strength could lead to an even stronger dollar, which has strengthened despite Trump’s victory, but a correlation of worse-than-expected figures could see the post-election rally abate.