Dollar Weakens ahead of Non-Farm Payrolls

Daily Update - 31st May 2017

Yesterday’s Market

• EUR Service Sentiment, Consumer Confidence, Business Climate
• USD Personal Spending, Personal Income & Dallas Fed Manufacturing Index

Yesterday Explained

All the reports which came out from eurozone was negative. Despite this Euro still emerged as the winner against US Dollar which is weighed down by a drop in U.S. Treasury yields.

Sterling also strengthened against the dollar on Tuesday as investors shrugged off opinion polls showing British Prime Minister Theresa May's lead over the labor opposition narrowing less than a week before the general election.

US Reports had mixed results while the chance of a June hike rose to 88% from 84% according to the CME's Fed watch measure but the dollar later declined.

Today’s Market

• EUR Consumer Price index, Unemployment Change and Rate & Consumer Price Index
• GBP Consumer Credit & Mortgage Approvals
• USD Chicago Purchasing Managers Index & Pending Home Sales

Today’s Focus

Early morning, we will see consumer data from Euro zone which will be followed by Consumer Credit and Mortgage Approvals from UK.

From US session, it brings us Chicago Purchasing Managers Index which captures business conditions across Illinois, Indiana and Michigan. The day will end with Pending Home Sales from US which is a leading indicator of trends of the housing market in the US.

However markets will be watching for Fridays Nonfarm payrolls report to get a clear indication on long term trend for US Dollar.