Economic releases for US last week mainly revolved around the Non-Manufacturing ISM data which was posted on Wednesday. A result above 50 is positive, also known as bullish which shows the comfortable level of growth the US has experiencing with a recording of 55.1%.
|Currency Pair||% Change (Month)||Difference on £200,000|
Whilst this figure is down 1.8% from 56.9% in May, the dollar is living up to its expectations as a safe haven currency. Statistically, the US dollar has been experiencing economic growth for the 119 consecutive months which has bolstered investor confidence in the currency even despite the slight economic slowdown it has been experiencing in recent years.
Today at 12:30, Non-farm Payroll data is released. This provides the number of new jobs created, it is a strong indicator of economic growth and many reviews are formed based on this information. The reading in March showed promising growth at near 3% whilst predictions for today’s reading are set to diminish to -1%, showing a reduction in jobs and unemployment for that quarter.
This again falls in line with other negative economic data patterns as mentioned prior, which ultimately point to the possibility that US growth may continue to ease off in the future.
Should clients feel that they may want to discuss any trading opportunities they may have regarding the USD, please get in touch with us to see how we could assist you.
Tensions between the US and Iran have risen with previous disagreements between the two nations exacerbated by Iran’s recent developments over its nuclear weapons. The Iranian President Hassan Rouhani has stated that starting on Sunday, Iran would be increasing its uranium enrichment process above the 2015 limit enforced by US sanctions in the nuclear program deal.
Due to the aforementioned safe haven currency status that surrounds the USD, in times of conflict investors transfer their funds to safer, less volatile currencies which will may potentially cause further strength to the dollar.
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