Yesterday saw the initial jobless claims released, which came in much better than expected down to 246,000 from 260,000 this month. Further signs that the US economy is going from strength to strength. On Wednesday night, the US federal reserve chose to keep interest rates unchanged, however stated that business confidence had improved. Lloyds bank have forecasted 2 interest rate hikes this year, the first in June and less than the anticipated 3 interest rate hikes originally planned by the Fed.
Since Donald Trump’s inauguration as President of the United States the value of the US Dollar and thus GBP/USD rates have primarily been driven by political news. However today looks to be an exception, a flurry of influential data releases for the US economy all within just 90 minutes could make for a very volatile trading period.
At 13:30 we have non-farm payrolls for January released, giving an insight into the number of new jobs created in non-agricultural business, with the consensus at 175k compared to December’s 156k. Alongside this we also have unemployment rate and labour force participation rates for January, both of which give an insight into the strength of the labour market and are expected to remain at 4.7% and 62.7% respectively. Between 14:45 and 15:00 the second wave of influential economic data releases are published, beginning with services and non-manufacturing PMI data showing insights into the business conditions of the respective sectors. Finally factory orders are released, with the consensus at 1%.
All of these have the potential to be major market movers if the actual deviates from the consensus as speculation begins regarding whether Trump really can ‘bring back jobs for America’ and ‘revive the manufacturing industry’.
We could see further inroads against the Pound today, as investors now lick their wounds after yesterdays flurry of data. If the data released today shows even more promising signs for the US economy, I would expect to see fantastic opportunities for people selling US Dollars to buy Sterling.
Whether you have a US Dollar buying or selling requirement, getting the best rate possible requires a knowledgeable broker who can execute a transfer at the right time. Why not speak to our team today to find out how much we could save you on 01494 725 353.
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