Following the US economy one can find a lot of opportunities in US indices such as Dow, S&P 500 and NASDAQ that hit record highs every single day or even trading on any FX US Dollar. As of now we did not experience any shocking data releases. Optimism over prospects for sustained strong global growth and improved corporate earnings have helped share markets rally at the start of 2018.
The surprises come from the US Administration decisions that are at times unpredictable thereby creating volatility while putting pressure on the US Dollar. Now the Congress needs to pass a spending bill by the end of Friday to avoid a government shutdown. And that is why the US Dollar is bleeding since the start of 2018.
US officials today are reporting some important leading indicators of the economy at 13:30 GMT. Forecasts show ahead of today’s release that U.S. housing starts and building permits probably slipped in December for the first time in three months as frosty winter weather delayed work. In the case where the actual reading would be in line with the expectations or better the US Dollar is expected to step on the breaks and start finding a support waiting for a retracement. On the other hand, should data be below estimates it could trigger more fear in the greenback.
At the same time, the Philadelphia Fed Manufacturing Index is reporting, where the data is compiled from a survey of about 250 manufacturers in the Philadelphia Federal Reserve district. Manufacturing is also a leading indicator that can have a big effect on the US Dollar and traders will be paying closer attention to their Economic Calendar.
The US Economy is Moving
Daily Analysis - 18/01/2018