Richard Perry
Independent Analyst
In the wake of the FOMC meeting last week, the key US economic data has become particularly in focus with strong US data being strong for the dollar. And this is what we saw playing out yesterday. The big dollar correction was stopped in its tracks as positive US data on inflation, housing and manufacturing all helped to support the greenback. With the market being so dollar focused, this induced a correction on equities and signs that the dollar could be ready for further gains. Not all is decided yet though, with the promise of further data today to muddy the waters once more near term. With a stronger dollar seen as impacting on US exporters, Wall Street fell away yesterday, with the S&P 500 closing down 0.6%. This has resulted in consolidation in Asian markets too overnight with the Nikkei up just 0.2%, whilst European markets are slightly lower in early trading today.
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