US dollar: forecast for June 1-7
The US Dollar strengthened versus all the major currencies in the end of May. The market clearly expects the economy to recover in the second quarter. As a result, the first rate hike by the Federal Reserve is now expected in September-October. The Fed’s Chief Janet Yellen confirmed last week the bank’s intention to enter the hiking cycle in 2015. The pace will depend on the economic data.
At the beginning of the new week we’ll be watching the US PMI indices. On Friday, the market will focus on the US May Non-farm payrolls. Don’t forget to leave your NFP forecasts at FXBAZOOKA.com. The greenback will extend the upside, if the US economy added more than 200K new jobs. Dollar index targets the 98 mark and higher.