From the end of last week the index of the US dollar retreated from the formed lows and today is clearly intention to continue its recovery. The reason for the growth are the expectations of future statistics, which will support the US currency.
Today, according to the forecast, Personal Consumption Expenditures will show positive dynamics. On Thursday, the ADP report is also expected to exceed past values. The Unemployment Claims may slightly increase, but not significantly. To contain the optimism of the dollar can data from the ISM, which will come later. It is expected that business activity has slightly decreased in May.
But the main support for the US dollar will the block of the labor market, which will be published on Friday. At the same time, with almost full employment, market participants will pay more attention to the growth of salaries. The growth of this indicator can provide significant support to the US dollar.
If all other indicators will be within acceptable limits, the general positive in the US will strengthen the investors’ belief that the Federal Reserve will raise interest rates at the Federal Open Market Committee in June. In this case, market participants will return to buying dollars, which will lead its to significant strengthening.