US Dollar: forecast for June 8-14
Demand for the US Dollar revived at the beginning of the new week ahead of the US labor market release. The figures came out surprisingly strong: May NFP equaled to 280K. What’s more, average earnings growth index overcame the forecast, rising to 2.3% (highest since 2009). The data increase expectations for a Fed’s rate hike at the coming meetings. Growing income could support the consumer activity in the coming months.
Next week the US economic calendar isn’t very rich with events. On Thursday pay attention to the retail sales. According to the expectations, the indicator has risen from 0.0% to 1.1% in May. On Friday American will release producer price index – here a return to the positive area is expected (forecast: +0.4%). USD index could easily break above 98 points if the coming releases confirm the economic recovery.
US NFP (Source: Trading Economics)