020 7898 0500Monday was not a great day for the US dollar, as various data releases produced underwhelming figures. Public Spending and Public Income were released together, and while Public Income grew against expectation, Public Spending failed to grow – which could lead to questions marks over December’s Interest Rate Hike; are the public now earning more but not spending. The ISM Manufacturing Purchase Managers’ Indices was also released below expectation, showing further contraction in the sector. The strong dollar is hurting US exports which is hurting US manufacturing.
We expect minimal data releases today, and investors will be looking forward to Friday’s all-important Non-farm Employment change, especially as yesterday’s poor data releases indicate that the strong US dollar is causing major headwinds for US manufacturing..
