New Round Of Data – USD in Demand - Forex News by FX Leaders

New Round Of Data – USD in Demand

Posted Thursday, May 4, 2017 by
Skerdian Meta • 1 min read

Today has been a good day for economic data, apart from the Canadian and Australian trade balance. The UK and European service figures this morning were impressive. The figures now coming in from the US are showing the economy's expansion.

Unemployment claims declined by around 20k and the trade balance deficit shrank, but the most important release was the labour costs or wages, as we like to call them.

The annualized productivity fell by 0.6% which should have put some pressure on employers to pay their staff a bit more, but it´s a nice jump nonetheless. The jump should translate into more spending and higher retail sales in the months to come.

Theoretically, that should increase the inflationary pressure forcing the FED to hike interest rates in June. Yesterday, the probabilities for an interest rate hike in June jumped to 93% after the FOMC statement and today the economic data looks great, so everything is falling into place for a June hike.

The USD is marginally better off now and I hope that this continues further as the day progresses. Although, it looks like the USD jump has stalled for now.

Leaving the productivity aside since it´s hard to measure, these numbers are great and the wages, in particular, should keep the USD bulls happy.

We opened a short term sell forex signal in EUR/USD and we also have a long-term signal in this forex pair. This makes us USD bulls at the moment, therefore this round of data suits our trading strategy. Let´s hope it works out!

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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