An unusual comment from Federal Reserve Bank of Atlanta President Dennis Lockhart has sent the greenback climbing again. Mr. Lockhart, who is usually more neutral in his public statements, confirmed that he would oppose postponing a key rate increase unless U.S. economic data showed significant deterioration, a scenario that appears relatively unlikely between now and September, when 75% of market observers anticipate that the first rate hike in close to seven years will take place.
On Friday, we will have an update on the U.S. labour market. Up to now, job creation numbers and the unemployment rate have consistently improved. We also saw earlier this week that personal incomes were rising and yesterday, Factory Orders were up 1.8% as expected. As a result, barring a surprise to end out this week, we see a continued bullish trend in the coming weeks for the USD.
Today, Canadian International Merchandise Trade data will be announced, as will the U.S. Trade Balance. We will also get a better idea of the health of the U.S. manufacturing sector with PMI data.
Have a great day!
- Range of the day: 1.3125 - 1.3250
Salim Laaroussi